Question: A 7-year municipal bond yields 4.80%. Your marginal tax rate (including state and federal taxes) is 35.00%. What interest rate on a 7-year corporate bond

A 7-year municipal bond yields 4.80%. Your marginal tax rate (including state and federal taxes) is 35.00%. What interest rate on a 7-year corporate bond of equal risk would provide you with the same after-tax return? (Round your final answer to two decimal places.)

a. 6.48%

b. 13.71%

c. 3.12%

d. 7.38%

e. 3.56%

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