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A taxable bond has a yield of 6 percent, and a municipal bond has a yield of 4 percent. If you are in the 30%
A taxable bond has a yield of 6 percent, and a municipal bond has a yield of 4 percent. If you are in the 30% tax bracket, the after-tax yield on the corporate bond would be _____ while the after-tax yield on the municipal bond would be _____.
A) 4.2%; 2.8% |
B) 8.57%; 5.71% |
C) 4.2%; 4.0% |
D) 6.0%; 2.8% |
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