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If the effective marginal tax rate is 25% and a firm can issue tax-free bonds...

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Accounting

If the effective marginal tax rate is 25% and a firm can issue tax-free bonds at a yield of 12%, then at what yield should this firm be able to issue taxable bonds?

A. 12%

B. 8%

C. 16%

D. 9%

E. 15%

Answer & Explanation Solved by verified expert
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