Question: A 5 . 5 % , 2 0 - year municipal bond is currently priced to yield 7 . 2 % . For a taxpayer

A 5.5%,20-year municipal bond is currently priced to yield 7.2%. For a taxpayer in the 33% marginal tax bracket, this bond would offer an equivalent taxable yield of:12.40%.3.58%.10.75%.8.46%.
 A 5.5%,20-year municipal bond is currently priced to yield 7.2%. For

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