Which of the following statements is FALSE?
A) The actual return kept by an investor will depend on how the interest is taxed.
B) It is important to use a discount rate that matches both the horizon and the risk of the cash flows.
C) The equivalent after-tax interest rate is r(1 - τ) .
D) The highest interest rate, for a given horizon, is the rate paid on Australian government securities.
Correct Answer:
Verified
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