Multiple Choice
When the federal tax rate on interest income is 20 percent, an investor will purchase______in order to maximize returns.
A) a local government bond with an interest rate of 7 percent
B) a corporate bond with an interest rate of 8 percent
C) a corporate bond with an interest rate of 8.5 percent
D) a local government bond with an interest rate of 6.5 percent
Correct Answer:
Verified
Correct Answer:
Verified
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