Currently, a threeminus year Treasury note pays 4.75%. Assuming that your tax rate is 20%, what...
Currently, a threeminus year Treasury note pays 4.75%. Assuming that your tax rate is 20%, what is the minimum interest rate that you would you need to earn on a taxminus free municipal bond in order to buy it instead? A. 0.95% B. 15.25% C. 3.8% D. 5.7%
Homework Answers
C. 3.8%
Minimum interest rate = 4.75%(1 - 0.20)
Minimum interest rate = 4.75%(0.80)
Minimum interest rate = 3.8%
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Currently, a threeminus year Treasury note pays 4.75%. Assuming
that your tax rate is 20%, what...
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