Assume That Javier Is Indifferent Between Investing in a City

question 99

Multiple Choice

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

• A) 50%
• B) 40%
• C) 30%
• D) 20%
• E) None of these

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Definitions:

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