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Assume you are in the 33 percent tax bracket and purchase a municipal bond with a yield of 7.25 percent. Use the formula presented in
Assume you are in the 33 percent tax bracket and purchase a municipal bond with a yield of 7.25 percent. Use the formula presented in this chapter to calculate the taxable equivalent yield for this investment. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
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