Question
Assume you are in the 35 percent tax bracket and purchase a municipal bond with a yield of 6.50 percent. Use the formula presented to
Assume you are in the 35 percent tax bracket and purchase a municipal bond with a yield of 6.50 percent. Use the formula presented 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.)
Tax-exempt yield / (1 Your tax rate)
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Financial Management In The Public Sector Tools Applications And Cases
Authors: Xiaohu Wang
3rd Edition
0765636891, 9780765636898
