Fergie has the choice between investing in a State of New York bond at 5.8 percent and a Surething bond at 9.2 percent. Assuming that both bonds have the same nontax characteristics and that Fergie has a 30 percent marginal tax rate, what interest rate does the state of New York bond need to offer to make Fergie indifferent between investing in the two bonds? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Question

Fergie has the choice between investing in a State of New York bond at 5.8 percent and a Surething bond at 9.2 percent. Assuming that both bonds have the same nontax characteristics and that Fergie has a 30 percent marginal tax rate, what interest rate does the state of New York bond need to offer to make Fergie indifferent between investing in the two bonds?  (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Leo Galleguillos · Answer

Can you show what work you have done for this so far? Also, please just use your first name when posting.

Juanita · Answer

3.6*30=108 3*30=180