Elki would like to invest $50,000 in tax-exempt securities. He now has the money invested in a

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Elki would like to invest $50,000 in tax-exempt securities. He now has the money invested in a certificate of deposit that pays 5.75% annually. What rate of interest would the tax-exempt security have to pay to result in a greater return on Elki’s investment than the certificate of deposit? Work the problem assuming that Elki’s marginal tax rate is 15%, 25%, 28%, and 33%.

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Concepts In Federal Taxation

ISBN: 9780324379556

19th Edition

Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher

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