Essay
Put the following securities in order according to their after-tax interest rates, from lowest to highest.The federal tax rate on interest income is 30 percent.Show your work.
A: A corporate bond that pays an interest rate of 6 percent.B: A corporate bond that pays an interest rate of 7 percent.
C: A local government bond identical that pays an interest rate of 4.5 percent.
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The after-tax interest rate is (1 ? t) ×...View Answer
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