$2$

$67$

Multiple Choice $1\mathrm{.}33$ points

$3$

Suppose an investor is considering a corporate bond with a $7\mathrm{.}17\%$ before$-$tax yield and a municipal bond with a $5\mathrm{.}93\%$ before$-$tax yield. At what marginal tax rate would the investor be indifferent between investing in the corporate and investing in the muni?

$4$

$5$

$6$

$7$

$23\mathrm{.}7\%$

$17\mathrm{.}3\%$

$15\mathrm{.}4\%$

$12\mathrm{.}4\%$

$39\mathrm{.}5\%$