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An investor is in the 28% federal tax bracket, pays a 9% state tax rate and 4% in local income taxes. For this investor a

An investor is in the 28% federal tax bracket, pays a 9% state tax rate and 4% in local income taxes. For this investor a municipal bond paying 6% interest is equivalent to a corporate bond paying _____ interest.

A.

9.08%

B.

11.79%

C.

10.17%

D.

9.68%

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