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A municipal bond has yield to maturity of 3.18 percent. An investor with a marginal tax rate of 35 percent is indifferent between this municipal
A municipal bond has yield to maturity of 3.18 percent. An investor with a marginal tax rate of 35 percent is indifferent between this municipal bond and an otherwise identical taxable corporate bond. What is the yield to maturity of the corporate bond?
Group of answer choices
5.72 percent
4.89 percent
5.25 percent
5.88 percent
4.29 percent
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