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A 10-year corporate bond has an annual coupon of 9 percent ($45 paid semi-annually) and a price of $1,040.06, while a 10-year municipal bond has
A 10-year corporate bond has an annual coupon of 9 percent (\$45 paid semi-annually) and a price of $1,040.06, while a 10-year municipal bond has an annual coupon of 5 percent ( $25 paid semiannually) and a price of $925.61. Given this information, determine what your tax rate must be so that both of these bonds have the same after-tax yield. \begin{tabular}{|} \hline 27.71% \\ \hline 30.23% \\ \hline 29.41% \\ \hline 28.57% \\ \hline 26.83% \\ \hline \end{tabular}
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