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In Order for You to Be Indifferent Between the After-Tax

Question 6

Multiple Choice

In order for you to be indifferent between the after-tax returns on a corporate bond paying 9% and a tax-exempt municipal bond paying 7%, what would your tax bracket need to be?


A) 17.6%
B) 27%
C) 22.2%
D) 19.8%

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