Susan Adamss marginal tax rate is 25 percent. She is contemplating the purchase of either a corporate
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Susan Adams’s marginal tax rate is 25 percent. She is contemplating the purchase of either a corporate bond that has a 3.5 percent coupon or a newly issued tax-exempt municipal bond paying2.5 percent. What is Susan’s taxable equivalent yield if she were to purchase the tax-exempt municipal bond?
A. 1.9125.
B.2.5000.
C.3.3333.
D.3.5000.
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Related Book For
Essentials Of Personal Financial Planning
ISBN: 9781945498237
1st Edition
Authors: Susan M. Tillery, Thomas N. Tillery
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