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An investor is in the 28 percent income tax bracket and can earn 6.3 percent in a nontaxable bond. What is the comparable yield on
An investor is in the 28 percent income tax bracket and can earn 6.3 percent in a nontaxable bond. What is the comparable yield on a taxable bond? If this same investor can earn 8.9 percent on a taxable bond, what must be the yield on a non-taxable bond so that the after-tax yields are equal?
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