Assume That Javier Is Indifferent Between Investing in a City

question 71

Multiple Choice

Assume that Javier is indifferent between investing in a city of El Paso bond that pays 5 percent interest and a corporate bond that pays 6.25 percent interest. What is Javier's marginal tax rate?

• A)50 percent
• B)40 percent
• C)30 percent
• D)20 percent
• E)None of the choices are correct.

---

Definitions:

Contract Manufacturing

The hiring of a foreign company to produce a specified volume of the initiating company’s product to specification; the final product carries the domestic firm’s name.