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| Teaching Since: | May 2017 |
| Last Sign in: | 283 Weeks Ago |
| Questions Answered: | 27237 |
| Tutorials Posted: | 27372 |
MCS,MBA(IT), Pursuing PHD
Devry University
Sep-2004 - Aug-2010
Assistant Financial Analyst
NatSteel Holdings Pte Ltd
Aug-2007 - Jul-2017
Kim Davis is in the 40 percent tax bracket. She is considering investing in HCA (taxable) bonds that carry a 12 percent interest rate.
a. What is her after-tax yield (interest rate) on the bonds?
b. Suppose Twin Cities Memorial Hospital has issued tax-exempt bonds that have an interest rate of 6 perecent. With all else the same, should Kim buy the HCA bonds (earlier question) or the Twin Cities bonds?
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