If you compare the yield of a municipal bond with that of a negotiable certificate of deposit,

Fantastic news! We've Found the answer you've been seeking!

Question:

If you compare the yield of a municipal bond with that of a negotiable certificate of deposit, what is the equivalent before tax yield of the certificate of deposit if the municipal bond has a yield of 8 % per year and the investor has a marginal tax rate of 28%

A)8.28%
B)10.24%
C)11.11%
D)9.30%