If you compare the yield of a municipal bond with that of a Treasury bond, - 4073

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If you compare the yield of a municipal bond with that of a Treasury bond, what is the equivalent before-tax yield of a municipal bond yielding 6% per year for an investor in the 36% tax bracket (round to nearest .1%)?

a.9.4%

b.8.1%

c.7.7%

d.6.3%

 
Solution Description

If you compare the yield of a municipal bond with that of a Treasury bond, what is the equivalent befor