After-tax interest rate


An investor is comparing he following two bonds: a bond from ABC cORP WHICH PAYS AN INTEREST RATE OF 9 PERCENT per year and a municipal bond which pays an interest rate of 7.9 percent per year. The investor is in the 15 percent tax bracket. Which bond will give the investor a higher after-tax interest rate and for which reason?

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Accounting Basics: After-tax interest rate
Reference No:- TGS0696415

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