Question
A tax-exempt municipal bond with a coupon rate of 7.00% has a market price of 99.09% of par. The bond matures in 20.00 years and
A tax-exempt municipal bond with a coupon rate of 7.00% has a market price of 99.09% of par. The bond matures in 20.00 years and pays semi-annually. Assume an investor has a 30.00% marginal tax rate. The investor would prefer otherwise identical taxable bond if it's yield to maturity was more than _____%
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Principles Of Corporate Finance
Authors: Richard Brealey
10th Global Edition
0071314172, 9780071314176
