Multiple Choice
A 5.5%, 20-year municipal bond is currently priced to yield 7.2%. For a taxpayer in the 33% marginal tax bracket, this bond would offer an equivalent taxable yield of
A) 8.20%.
B) 10.75%.
C) 11.40%.
D) 4.82%.
Correct Answer:
Verified
Correct Answer:
Verified
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