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A firm in the 2 0 percent tax bracket is aware of a tax - exempt security that is paying a yield of 7 percent.

A firm in the 20 percent tax bracket is aware of a tax-exempt security that is paying a yield of 7 percent. To match this yield, taxable securities must offer a before-tax yield of
8.75 percent.
10.8 percent.
20.0 percent.
None of these are correct.
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