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What Would the Equivalent Taxable Yield Be on an Investment

Question 33

Multiple Choice

What would the equivalent taxable yield be on an investment that offers a 6 percent tax exempt yield? Assume a marginal tax rate of 28 percent.

A) 0.125 percent
B) 7.20 percent
C) 6.48 percent
D) 8.33 percent
E) 32.14 percent

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