The pretax equivalent rate of return on a 7% municipal bond when the tax rate is 30%, the average cost of funds is 6%, and 100% of interest is nondeductible is:
A) 10%
B) 8.2%
C) 9.0%
D) none of the above

Question

Quizplus · Accepted Answer

The Answer of The pretax equivalent rate of return on a 7% municipal bond when the tax rate is 30%, the average cost of funds is 6%, and 100% of interest is nondeductible is:
A) 10%
B) 8.2%
C) 9.0%
D) none of the above

The Pretax Equivalent Rate of Return on a 7% Municipal