ECON 405 - What is the interest rate needed on a $1,000 face value 6% coupon
Question # 00596166
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Updated on: 09/28/2017 01:48 AM Due on: 09/28/2017
What is the interest rate needed on a $1,000 face value 6% coupon corporate bond in order to make it equivalent in terms of return to one whose interest rate is tax free? Assume the corporate tax rate is 30%
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Solution: ECON 405 - What is the interest rate needed on a $1,000 face value 6% coupon