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A client in the 33 percent marginal tax bracket is comparing a municipal bond that offers a 5.40 percent yield to maturity and a similar-risk
| A client in the 33 percent marginal tax bracket is comparing a municipal bond that offers a 5.40 percent yield to maturity and a similar-risk corporate bond that offers a 6.90 percent yield. |
| Determine the equivalent taxable yield. (Round your answer to 2 decimal places.) |
| Equivalent taxable yield | % |
| Which bond will give the client more profit after taxes? | ||||
|
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Financial Intelligence
Authors: Income Mastery
1st Edition
1647773210, 978-1647773212
