Multiple Choice
John Smith is in the 28% tax bracket. If he were to purchase a $1,000 municipal bond that has a stated interest rate of 6.9%, what would the fully taxable equivalent yield be? (Round the answer to two decimal places.)
A) 6.90%
B) 8.26%
C) 9.58%
D) 12.11%
E) 14.63%
Correct Answer:
Verified
Correct Answer:
Verified
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