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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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