Assume that you are a taxpayer in the 21 percent tax bracket. Also, assume you purchase a
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Question:
Assume that you are a taxpayer in the 21 percent tax bracket. Also, assume you purchase a tax-exempt bond that pays 3 percent. What is your taxable equivalent yield?
A) 3 percent
B) 3.8 percent
C) 5.8 percent
D) 5.3 percent
E) 6.8 percent
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