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A bond issued by the state of Alabama is priced to yield 7.25%. If you are in the 28% tax bracket, this bond would provide

A bond issued by the state of Alabama is priced to yield 7.25%. If you are in the 28% tax bracket, this bond would provide you with an equivalent taxable yield of _________.

8.68%

4.5%

none of the above

7.25%

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