Question: A client in the 35 percent marginal tax bracket is comparing a municipal bond that offers a 6.10 percent yield to maturity and a similar-risk

A client in the 35 percent marginal tax bracket is comparing a municipal bond that offers a 6.10 percent yield to maturity and a similar-risk corporate bond that offers a 7.25 percent yield.

Determine the equivalent taxable yield.(Round your answer to 2 decimal places.)

Equivalent taxable yield

Which bond will give the client more profit after taxes?

Corporate bond

Municipal bond

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