James invests $100,000 in a city of Athens bond that pays 8% interest. Alternatively, James...
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James invests $ in a city of Athens bond that pays interest. Alternatively, James could have invested the $ in a bond recently issued by HighTech, Incorporated that pays interest with similar risk as the city of Athens bond. Assume that James's marginal tax rate is Which bond should James should choose and why? Multiple Choice James should be indifferent between the two bonds. The HighTech, Incorporated bond because it earns a higher pretax rate of return. The city of Athens bond because it earns a higher aftertax rate of return. The city of Athens bond because it earns a higher pretax rate of return. The HighTech, Incorporated bond because it earns a higher aftertax rate of return 
James invests $ in a city of Athens bond that pays interest. Alternatively, James could have invested the $ in a bond recently issued
by HighTech, Incorporated that pays interest with similar risk as the city of Athens bond. Assume that James's marginal tax rate is Which bond
should James should choose and why?
Multiple Choice
James should be indifferent between the two bonds.
The HighTech, Incorporated bond because it earns a higher pretax rate of return.
The city of Athens bond because it earns a higher aftertax rate of return.
The city of Athens bond because it earns a higher pretax rate of return.
The HighTech, Incorporated bond because it earns a higher aftertax rate of return
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