What tax rate would dennis be indifferent between the bonds

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Reference no: EM13905625

1. Dennis is currently considering investing in municipal bonds that earn 6 percent interest, or in taxable bonds issued by the Coca-Cola Company that pay 8 percent. If Dennis's tax rate is 20 percent, which bond should he choose? Which bond should he choose if his tax rate is 30 percent? At what tax rate would he be indifferent between the bonds? What strategy is this decision based upon?

Reference no: EM13905625

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