Question: If Dell Computer expects to issue a bond that has a yield of 5.8% and the city of Austin is issuing a municipal bond that

If Dell Computer expects to issue a bond that has a yield of 5.8% and the city of Austin is issuing a municipal bond that has a yield of 5%. What tax bracket must you be in to be indifferent between owning these two bonds?

a. 10.16%

b. 5%

c. 13.79%

d. 0.8%

e. 86.21%

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