A bond investor is considering two 10 year maturity bonds, Ask an Expert

Accounting

A bond investor is considering two 10 year maturity bonds both rated AAA: the municipal bond is yielding 1.15% and the corporate bond is yielding 2.10%.

At what marginal tax rate would the bond investor be indifferent between the two bonds? Enter your answer rounded off to two decimal points. Do not enter % in the answer box.

For example, if your answer is 0.12345 or 12.345% then enter as 12.35 in the answer box.

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Financial Accounting, Accounting

Category:- Financial Accounting
Reference No.:- M91954270

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