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A. 31.83% B. 36.27% C. 28.93% D. 34.82% E. 40.71% A municipal bond has a YTM of 3.93 percent while the YTM of a comparable

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A. 31.83%

B. 36.27%

C. 28.93%

D. 34.82%

E. 40.71%

A municipal bond has a YTM of 3.93 percent while the YTM of a comparable taxable bond is 5.53 percent. What is the tax rate that will make an investor indifferent between the municipal bond and the taxable bond

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