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A tax-free municipal bond promises a return of 3.5%. A taxable bond promises a return of 4.5%. If your tax bracket is 20%, what is

A tax-free municipal bond promises a return of 3.5%. A taxable bond promises a return of 4.5%. If your tax bracket is 20%, what is the taxable equivalent return of the tax-free municipal bond? (Points : 5)

4.24%

2.8%

3.6%

4.38%

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