1. One of your California clients (32% Federal and 9% State tax bracket) has asked you to evaluate an AA rated 20 year San Francisco municipal bond for them with a yield to maturity of 5%. Before you show them an equivalent corporate bond (AA grade as well) what should the tax equivalent yield be for them to consider your tax free bond?

Answer rating: 100% (QA)

To determine the taxequivalent yield for the client to consider the AArated 20year San Francisco mun... View the full answer