17 Curtis invests 225 000 in a city of Athens bond that pays 4 25 percent interest Alternatively Curtis could have invested the

Question

17 Curtis invests 225 000 in a city of Athens bond that pays 4 25 percent interest Alternatively Curtis could have invested the 225 000 in a bond recently issued by Initech Incorporated that pays 5 50 percent interest with similar risk as the city of Athens bond Assume that Curtis s marginal tax rate is 24 percent If Curtis invested in the Initech Incorporated bonds what would be his after tax rate of return from this investment 00 59 09 Multiple Choice 2 66 percent 4 25 percent 4 18 percent 0 86 percent

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