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For a Taxpayer in the 25% Marginal Tax Bracket,a 20-Year

Question 18

Multiple Choice

For a taxpayer in the 25% marginal tax bracket,a 20-year municipal bond currently yielding 5.5% would offer an equivalent taxable yield of:

A) 7.33%.
B) 10.75%.
C) 5.5%.
D) 4.125%.
E) 6.45%.

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