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A client in the 26 percent marginal tax bracket is comparing a municipal bond that offers a 5.4 percent yield to maturity and a similar-risk

A client in the 26 percent marginal tax bracket is comparing a municipal bond that offers a 5.4 percent yield to maturity and a similar-risk corporate bond that offers a yield of 8.00 percent. Determine the equivalent taxable yield.

Answer is NOT 10.81%

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