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Question
If you compare the yield of a municipal bond with that of a negotiable certificate of deposit, what is the equivalent before-tax yield of the certificate of deposit if the municipal bond has a yield of 8% per year and the investor has a marginal tax rate of 28%?A) 8.28%
B) 9.30%
C) 10.24%
D) 11.11%
Answer
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Related questions
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