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Assume That John's Marginal Tax Rate Is 17 Percent

Question 82

Multiple Choice

Assume that John's marginal tax rate is 17 percent. If a city of Austin bond pays 9 percent interest, what interest rate would a corporate bond have to offer for John to be indifferent between the two bonds?


A) 25.50 percent
B) 10.84 percent
C) 9) 00 percent
D) 7) 47 percent
E) None of the choices are correct.

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