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Business, 27.05.2020 18:58 jerry22591

Fergie has the choice between investing in a State of New York bond at 4.8 percent and a Surething Inc. bond at 7.8 percent. Assuming that both bonds have the same nontax characteristics and that Fergie has a 30 percent marginal tax rate, what interest rate does the state of New York bond need to offer to make Fergie indifferent between investing in the two bonds

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