Question
An investor is in the 28 percent federal tax bracket and pays a 9 percent state tax rate and 4 percent in local income taxes.
An investor is in the 28 percent federal tax bracket and pays a 9 percent state tax rate and 4 percent in local income taxes. For this investor a municipal bond paying 6 percent interest is equivalent to a corporate bond paying _____ interest.
Multiple Choice
- 11.79 percent
- 10.17 percent
- 9.08 percent
- 9.68 percent
- 8.47 percent
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CFIN
Authors: Scott Besley, Eugene Brigham
5th edition
1305661656, 9781305888036 , 978-1305666870
