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An investor purchases a 5 percent municipal bond yielding 6.2 percent. If the investor is in the 28 percent tax bracket, the investor would have

An investor purchases a 5 percent municipal bond yielding 6.2 percent. If the investor is in the 28 percent tax bracket, the investor would have to purchase a corporate bond yielding _________ to equal the after-tax yield on the municipal bond.

8.6 percent

5.7 percent

6.9 percent

6.2 percent

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