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Suppose you are indifferent between the investment in a taxa.pdf

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Suppose you are indifferent between the investment in a taxable corporate bond that is yielding 12% annual interest rate or a municipal bond. If your marginal tax is 22%, what should be the interest rate on the municip bond? (Write only the final answer).

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Suppose you are indifferent between the investment in a taxable corporate bond that is yielding 12% annual interest rate or a municipal bond. If your marginal tax is 22%, what should be the interest rate on the municip bond? (Write only the final answer)

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Suppose you are indifferent between the investment in a taxa.pdf

  • 1. Suppose you are indifferent between the investment in a taxable corporate bond that is yielding 12% annual interest rate or a municipal bond. If your marginal tax is 22%, what should be the interest rate on the municip bond? (Write only the final answer)