Solution-How much implicit tax would curtis pay on the city

How much implicit tax would curtis pay on the city of athen

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Curtis invests $225,000 in a city of Athens bond that pays 4.25% interest. Alternatively, Curtis could have invested the $225,000 in a bond recently issued by Initech, Inc. that pays 5.50% interest with similar risk as the city of Athens bond. Assume that Curtis's marginal tax rate is 24%.

How much implicit tax would Curtis pay on the city of Athens bond?

Reference no: EM132359693

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How much implicit tax would curtis pay on the city of athen

Reference no: EM132359693

Reference no: EM132359693

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