In Order for You to Be Indifferent Between the After-Tax

question 60

Multiple Choice

In order for you to be indifferent between the after-tax returns on a corporate bond paying 9% and a tax-exempt municipal bond paying 7%, what would your tax bracket need to be

• A)17.6%
• B)27%
• C)22.2%
• D)19.8%
• E)Cannot tell from the information given

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