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At What Point Would an Investor Be Indifferent Between a Trifton

Question 14

Multiple Choice

At what point would an investor be indifferent between a Trifton corporate bond yielding 12.0 percent and a tax-free municipal bond of equal financial strength if the investor's marginal tax rate is 25 percent?


A) 6.00%
B) 7.10%
C) 9.00%
D) 9.15%
E) 14.00%

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