Assume that Bill’s marginal tax rate is 22 percent. If corporate bonds pay 9 percent interest, w

 
   

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Assume that Bill's marginal tax rate is 22 percent. If corporate bonds pay 9 percent interest, what interest rate would a municipal bond have to offer for Bill to be indifferent between the two bonds? (Do not round your final answer.)

10.80 percent

22.00 percent

8.00 percent

7.02 percent

9.00 percent