What is the minimum rate the taxable corporate bonds

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Point 1: An investor, Shirley Noirs, is in the 20% tax bracket and has been contemplating investing in corporate bonds. After a recent stay at the Eiffel Payne Hospital, a not-for-profit hospital, she learned that they will be issuing tax-exempt bonds for a major expansion. The tax-free bonds pay 6% interest.

Question 1: What is the minimum rate the taxable corporate bonds of the same risk must pay for Shirley to invest in them?

Reference no: EM132484235

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