Put the following securities in order according to their after-tax interest rates, from lowest to highest.The federal tax rate on interest income is 30 percent.Show your work.
A: A corporate bond that pays an interest rate of 6 percent.B: A corporate bond that pays an interest rate of 7 percent.
C: A local government bond identical that pays an interest rate of 4.5 percent.

Question

Quizplus · Accepted Answer

The Answer of Put the following securities in order according to their after-tax interest rates, from lowest to highest.The federal tax rate on interest income is 30 percent.Show your work.
A: A corporate bond that pays an interest rate of 6 percent.B: A corporate bond that pays an interest rate of 7 percent.
C: A local government bond identical that pays an interest rate of 4.5 percent.

Put the Following Securities in Order According to Their After-Tax