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A Bond Issued by the State of Alabama Is Priced

Question 5

Multiple Choice

A bond issued by the state of Alabama is priced to yield 6.25%. If you are in the 28% tax bracket, this bond would provide you with an equivalent taxable yield of ________.


A) 4.5%
B) 7.25%
C) 8.68%
D) none of these options

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