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$15$

A municipal bond has a coupon rate of $6\mathrm{.}04$ percent and a YTM of $5\mathrm{.}67$ percent. If an investor has a marginal tax rate of $39$ percent, what is the equivalent pretax yield on a taxable bond?

Multiple Choice

$9\mathrm{.}90\%$

$9\mathrm{.}30\%$

$3\mathrm{.}46\%$

$6\mathrm{.}49\%$

$3\mathrm{.}68\%$