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(b). An investor is in the 32 percent income tax bracket and can earn 4.3 percent on a nontaxable bond. What is the comparable yield

(b). An investor is in the 32 percent income tax bracket and can earn 4.3 percent on a nontaxable bond. What is the comparable yield on a taxable bond? If this same investor can earn 7.2 percent on a taxable bond, what must be the yield on a nontaxable bond so that the after-tax yields are equal? (5 Points)

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