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Health care finance

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John Doe is in the 40 percent tax bracket. He is considering investing in HCA bonds that carry a 12 percent interest rate.

A. What is his after-tax interest rate on the bonds?

  • Health care finance - ,

    AT= BT * (1-T)
    12% * (1-.40) = 7.2%

    I think... almost positive that's the answer, hope it helps

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