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A municipal bond pays a rate of return of 3.55%. If an investor is in a 55% tax bracket and want to invest in a

A municipal bond pays a rate of return of 3.55%. If an investor is in a 55% tax bracket and want to invest in a corporate bond of the same risk level, maturity, and terms, then what interest rate would they require?

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1.95%

7.89%

1.60%

6.45%

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