Assume john richards pays income taxes at a 30 percent rate, Financial Management

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Assume john richards pays income taxes at a 30 percent rate

Assume John Richards pays income taxes at a 30 percent rate. He currently owns a not for profit (municipal) bond that pays 5 percent interest. What interest rate would have to be set on a for profit (corporate) bond to produce the same amount of usable (after tax) income?

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Financial Management: Assume john richards pays income taxes at a 30 percent rate

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Financial Management: Assume john richards pays income taxes at a 30 percent rate

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