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March 6, 2015

Homework Help: Accounting

Posted by Angel Wright on Monday, January 25, 2010 at 1:38pm.

Jane Smith currently holds tax-exempt bonds of Good Samaritan Healthcare that pay 7 percent interest. She is in the 49 percent tax bracket. Her broker wants her to buy some Beverly Enterprises taxable bonds that will be issued next week. With all else the same, what rate must be set on the Beverly bonds to make Jane interested in making a switch!

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