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Business, 01.09.2021 17:10 apere655

Hugh has the choice between investing in a City of Heflin bond at 4.05 percent or investing in a Surething Incorporated bond at 5.75 percent. Assuming that both bonds have the same nontax characteristics and that Hugh has a 40 percent marginal tax rate, what interest rate does Surething Incorporated need to offer to make Hugh indifferent between investing in the two bonds

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