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Calculate the minimum interest rate

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Question - Mr. and Mrs. Angello are in the 35% tax bracket. They are trying to decide whether they should purchase a taxable bond or a municipal bond that pays 5.9% They are subject to the NIIT, but they are not subject to any state income tax.

The minimum interest rate (break-even point) at which they should consider buying the taxable bond (rounded to 2 decimal places) is

9.65%

8.12%

10.01%

3.67%

Reference no: EM132084429

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