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A municipal bond has a coupon rate of 5.83 percent and a YTM of 5.53 percent. If an investor has a marginal tax rate of

A municipal bond has a coupon rate of 5.83 percent and a YTM of 5.53 percent. If an investor has a marginal tax rate of 28 percent, what is the equivalent pretax yield on a taxable bond?

Multiple Choice 3.98% 8.10% 7.68% 4.20% 5.94%

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