Which of the Following Statements Is FALSE

question 12

Multiple Choice

Which of the following statements is FALSE?

• A)The equivalent after-tax interest rate is r - (τ × r).
• B)Interest rates vary based on the identity of the borrower.
• C)The ability to deduct the interest expense increases the effective after-tax interest rate paid on the loan.
• D)For loans to borrowers other than the U.S.Treasury,the stated interest rate is the maximum amount that investors will receive.