$32$ points

A taxable bond has a yield of $8\%$ and a non$-$taxable municipal bond has a yield of $4\mathrm{.}75\%.$ Your marginal tax bracket is $40\%.$ What is the tax adjusted yield on the taxable bond? Please provide your answer as a decimal.

$42$ points

Given the information in Pt $1,$ what would the breakeven tax rate be$?$ Please provide your answer as a decimal.

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$51$ Point

Which bond should be chosen

Taxable Bond

Non$-$Taxable bond