Decision Making Assignment | Homework For You

1. Suppose you I offer you one of two options.Homework For You
Option A: Irving can give you $975 today, tax free.
Option B: Irving can give you a $1,000 face value bond that pays a 4% coupon payment and matures in 1 year; the tax rate is 20% on capital gains. Which option do you take? Use a 5% interest rate for discounting. Inflation is not a factor in this question. Get Finance homework help today

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