If Kari is the 35% income tax bracket and is thinking about buying a corporate bond that

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If Kari is the 35% income tax bracket and is thinking about buying a corporate bond that yields 2.5%, what yield must a muni bond pay to make her indifferent between the two bonds, ceteris paribus?

a. 2.15%

b. 1.79%

c. 1.625%

d. 1.055%

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Money, Banking, Financial Markets and Institutions

ISBN: 978-0538748575

1st edition

Authors: Michael Brandl

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Question Posted: Jun 21, 2019 07:00 AM

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If Kari is the 35% income tax bracket and is thinking about buying a corporate bond that

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Money, Banking, Financial Markets and Institutions

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