What taxable yield is equivalent to a municipal bond yield


What taxable yield is equivalent to a municipal bond yield of 5.8 percent if a taxpayer has a marginal tax rate of 43 percent?

a) 3.31 percent

b) 9.39 percent

c) 10.18 percent

d) 4.59 percent

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Financial Management: What taxable yield is equivalent to a municipal bond yield
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