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Business, 20.01.2022 03:30 keiannabmoss

Theresa Davis is in the 40 percent personal tax bracket. She is considering investing in HSA (taxable) bonds that carry a 12 percent interest rate. What is her after-tax yield (interest rate) on the bonds?

Suppose Twin Cities Memorial Hospital has issued tax-exempt bonds that have an interest rate of 6 percent. With all else the same, should Kim buy the HCA or the Twin Cities bonds?

With all else the same, what interest rate on the tax-exempt Twin Cities bonds would make Kim indifferent between these bonds and the HCA bonds?

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