CH10 Curtis invests $275,000 n a city of Athens bond that pays 475% interest. Curtis...
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CH10 Curtis invests $275,000 n a city of Athens bond that pays 475% interest. Curtis could bave invested the $275,000 in a bond 4 recently issued by Intech, Inc. that pays 650% interest with similar risk as the city ofAthens bond. Assume that Curtis's marginal tax rate is 28% If Curtis invested in the Initech, Inc. bonds, what would be his after-tax rate of return from this investment? 3.42% 475% 4 68%
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