QUESTION $34$

$2\mathrm{.}5$ points

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A corporate bond pays $10$ per cent interest. How much would a municipal bond have to pay to be equivalent to this corporate bond on an after$-$tax basis for an investor in the $28$ per cent tax bracket?

A$.2\mathrm{.}8$ per cent.

B$.,7\mathrm{.}7$ per cent.

C$.,7\mathrm{.}2$ per cent.

D$.,12\mathrm{.}8$ per cent.

E$.,6\mathrm{.}8$ per cent.