Assume that John's marginal tax rate is 17 percent. If a city of Austin bond pays 10.2 percent interest, what interest rate would a corporate bond have to offer for John to be indifferent between the two bonds

12.29%

Explanation:

Municipal bonds are tax exempt and so are attractive for this reason. If John is to be indifferent between the two, the corporate bond would have to offer a return that when adjusted for tax, will give the same return as the municipal bond.

Assume that return is x;

x * ( 1 - 17%) = 10.2%

0.83x = 10.2%

x = 10.2%/0.83

x = 12.29%

answer; communities of interest; i believe this is correct, plz check first good luck;

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

your welcome leave a rate and a < 3