Multiple Choice
In order for you to be indifferent between the after-tax returns on a corporate bond paying 7% and a tax-exempt municipal bond paying 5.5%, what would your tax bracket need to be
A) 22.6%
B) 21.4%
C) 26.2%
D) 19.8%
E) Cannot tell from the information given
Correct Answer:
Verified
Correct Answer:
Verified
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