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Assume That Marsha Is Indifferent Between Investing in a City

Question 56

Multiple Choice

Assume that Marsha is indifferent between investing in a city of Destin bond that pays 6 percent interest and a corporate bond that pays 8 percent interest. What is Marsha's marginal tax rate?


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

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