A 9 . 1 % coupon bond issued by the state of Indiana sells for $ 1

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Question:

9.1 %

coupon bond issued by the state of Indiana sells for $

1, 000 .

What coupon rate on a corporate bond selling at its $

1, 000

par value would produce the same after

-

tax return to the investor as the municipal bond if the investor is in the

15 %

marginal tax bracket?

10.7 %

8.1 %

9.5 %

11.6 %

Posted Date: May 19, 2024 03:01 AM

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A 9 . 1 % coupon bond issued by the state of Indiana sells for $ 1

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