A Japanese company is able to borrow capital from its Japanese bank at 3% interest for one year and transfer the funds to its Korean subsidiary as an intracorporate loan for one year. Assume the effective corporate income tax for the Japanese firm to be 11 percent and for the Korean subsidiary 17%. In order to reduce overall tax payments, what should the intracorporate loan interest rate be? Group of answer choices Less than 3% Same 3% More than 3%

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