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A bond issued by Delta Airlines is issued with a 7% yield. An investor has a 20% marginal tax bracket. What yield would the investor
A bond issued by Delta Airlines is issued with a 7% yield. An investor has a 20% marginal tax bracket. What yield would the investor expect to get on a municipal bond in order to compare to the Delta bond? i.e. what is the equivalent tax-exempt yield? Give your answer to the nearest 0.01% and enter it as a percentage.
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