Consider a tax-exempt municipal bond yielding 6%. To an investor in the following marginal tax brackets, what

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Consider a tax-exempt municipal bond yielding 6%. To an investor in the following marginal tax brackets, what is the equivalent before-tax interest rate that a taxable bond would have to offer to be considered equivalent to the municipal bond?
a. 10%
b. 28%
c. 33%
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Fundamentals of Investments

ISBN: 978-0132926171

3rd edition

Authors: Gordon J. Alexander, William F. Sharpe, Jeffery V. Bailey

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