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A taxable bond has a coupon rate of 5.08 percent and a YTM of 5.39 percent. If an investor has a marginal tax rate of

A taxable bond has a coupon rate of 5.08 percent and a YTM of 5.39 percent. If an investor has a marginal tax rate of 30 percent, what is the equivalent aftertax yield?

Multiple Choice

3.77%
7.26%
5.63%
7.70%
3.56%

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