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A municipal bond has a YTM of 4.17 percent while the YTM of a comparable taxable bond is 6.37 percent. What is the tax rate

A municipal bond has a YTM of 4.17 percent while the YTM of a comparable taxable bond is 6.37 percent. What is the tax rate that will make an investor indifferent between the municipal bond and the taxable bond?

Multiple Choice

43.65%

34.54%

45.37%

52.76%

37.99%

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