[Step-by-Step] Your best taxable investment opportunity has an EAR of 4%. You best tax free investment opportunity has an EAR of 3%. If your tax rate is 30%, which
Question: Your best taxable investment opportunity has an EAR of 4%. You best tax free investment opportunity has an EAR of 3%. If your tax rate is 30%, which opportunity provides the higher after tax interest rate?
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