7 Curtis invests 650 000 in a city of Athens bond that pays 8 75 percent interest Alternatively Curtis could have invested the

Question

7 Curtis invests 650 000 in a city of Athens bond that pays 8 75 percent interest Alternatively Curtis could have invested the 650 000 in a bond recently issued by Initech Incorporated that pays 10 00 percent interest with similar risk as the city of Athens bond Assume that Curtis s marginal tax rate is 24 percent How much explicit tax would Curtis incur on interest earned on the Initech Incorporated bond 01 57 49 Multiple Choice 49 800 00 15 600 00 13 650 00 42 525 00

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