Company who offers range of insurance products

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Tech Inc. (HUM), a for-profit health care company who offers a range of insurance products and health and wellness services, recently issued bonds with a yield of 6%. Sam Hospital, a not-for profit health care enterprise, issued bonds of equal risk with a yield of 4%. 1). at what tax rate would an investor be indifferent between these two bonds? 2). which bond should an investor in the 30% tax bracket invest in? Please type answer and show work.

A. 33.3%, Sam Hospital’s

B. 50.0% Tech Inc

C. 50.0% Sam Hospital’s

D. 33.3%, Tech Inc

Reference no: EM131821546

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