Assume that John's marginal tax rate is 20%. If a city of Austin bond pays...
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Accounting
Assume that John's marginal tax rate is 20%. If a city of Austin bond pays 10.20% interest, what interest rate would a corporate bond have to offer for John to be indifferent between the two bonds?
Multiple Choice
25.50%
12.75%
10.20%
8.16%
None of the choices are correct.
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