Fergie has the choice between investing in a State of New York bond at 4 percent...

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Fergie has the choice between investing in a State of New York bond at 4 percent and a Surething Inc. bond at 6.6 percent. Assuming that both bonds have the same nontax characteristics and that Fergie has a 30 percent marginal tax rate, what interest rate does the state of New York bond need to offer to make Fergie indifferent between investing in the two bonds? (Do not round intermediate calculations. Round your answer to 2 decimal places.) O Answer is complete but not entirely correct. Interest 2.80 % rate Fergie has the choice between investing in a State of New York bond at 4 percent and a Surething Inc. bond at 6.6 percent. Assuming that both bonds have the same nontax characteristics and that Fergie has a 30 percent marginal tax rate, what interest rate does the state of New York bond need to offer to make Fergie indifferent between investing in the two bonds? (Do not round intermediate calculations. Round your answer to 2 decimal places.) O Answer is complete but not entirely correct. Interest 2.80 % rate

Answer rating: 100% (QA)

New York bond rate 4 Surthing inc66 margin tax rate 30 Surthing inc ... View the full answer