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What would be her after-tax rate of return

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Question - Susie invests $250,000 in a city of Athens bond that pays 7% interest. Alternatively, Susie could have invested the $250,000 in a bond recently issued by Initech, Inc. that pays 9% interest with similar risk as the city of Athens bond. Assume that Susie's marginal tax rate is 32%. If Susie invested in the Initech Inc. bonds, what would be her after-tax rate of return?

Reference no: EM133011119

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