(d) Given that the Johnsons are in the 25 percent federal marginal tax rate, what is the...
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(d) Given that the Johnsons are in the 25 percent federal marginal tax rate, what is the equivalent taxable yield for the municipal bond choice? Should they invest in your recommendation in part
(c) or in the municipal bond?
Why? You may calculate the equivalent taxable yield using the footnote on page 130.
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