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A corporate bond pays 6.25 percent interest. How much would a municipal bond have to pay to be equivalent to this on an after tax

A corporate bond pays 6.25 percent interest. How much would a municipal bond have to pay to be equivalent to this on an after tax basis if you are in the 28 marginal percent tax bracket?

A) 7.82 percent

B) 5.79 percent

C) 4.50 percent

D) 7.26 percent

E) 8.38 percent

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