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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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