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A Aaa-rated taxable corporate bond carries a current yield to maturity of 16.67 percent while Aaa-rated municipal bonds have a 12 percent yield to maturity.

A Aaa-rated taxable corporate bond carries a current yield to maturity of 16.67 percent while Aaa-rated municipal bonds have a 12 percent yield to maturity. The break-even marginal tax rate is:

A. 35%

B. 28%

C. 33%

D.25%

E. 30%

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