What is the minimum rate the taxable corporate bonds

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Reference no: EM131849722

An investor, Terry Noirs, is in the 25% tax bracket and has been contemplating investing in corporate bonds.

After a recent stay at the Eiffel Payne Hospital, a not-for-profit hospital, he learned that they will be issuing tax-exempt bonds for a major expansion.

The tax-free bonds pay 6% interest. What is the minimum rate the taxable corporate bonds of the same risk must pay for Terry to invest in them?

Reference no: EM131849722

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