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Assume an investor has a bond tax-free and is yielding 10%. If the investor was in a tax bracket of 25% and 32%. What is
Assume an investor has a bond tax-free and is yielding 10%. If the investor was in a tax bracket of 25% and 32%. What is the tax-equivalent yield under both tax rates? a. At 25% tax bracket 18.67% and 32% tax bracket 0.57%. b. At 25% tax bracket 13.33% and 32% tax bracket 14.71% c. At 25% tax bracket 0.77% and 32% tax bracket 1.43%. d. At 25% tax bracket 0.38% and 32% tax bracket 3.10%.
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