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A corporate bond currently yields 8.80%. Municipal bonds with the same risk, maturity, and liquidity currently yield 5.50%. At what tax rate would investors be

A corporate bond currently yields 8.80%. Municipal bonds with the same risk, maturity, and liquidity currently yield 5.50%. At what tax rate would investors be indifferent between the two bonds? (Round your final answer to two decimal places.)

a. 60.00%

b. 37.50%

c. 33.00%

d. 62.50%

e. 25.00%

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