Business, 28.02.2020 19:21 acavalieri72

Assume that John's marginal tax rate is 40%. If a city of Austin bond pays 6% interest, what interest rate would a corporate bond have to offer for John to be indifferent between the two bonds?
A. 30%
B. 10%
C. 6%
D. 3.6%
E. None of these

Answers: 3

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Assume that John's marginal tax rate is 40%. If a city of Austin bond pays 6% interest, what interes...