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Suppose your tax rate is 23% and you want to purchase a municipal bond of $1,750 for 9% interest. At

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Suppose your tax rate is 23% and you want to purchase a municipal bond of $1,750 for 9% interest. At what interest rate on a for-profit bond , before tax, would you be indifferent between the two bonds?

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Answer Income being interest on bond 1750 9 157 5 Rate of tax being 23 there for tax amount will be View the full answer


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Related Book For  answer-question
Finance Applications and Theory

Finance Applications and Theory

ISBN: 978-0077861681

3rd edition

Authors: Marcia Cornett, Troy Adair

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Posted Date: February 13, 2021 11:45:27
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