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Consider an investor facing a 35% marginal tax rate who purchases a tax-exempt issue with a yield of 4.75%. What is equivalent taxable yield of

  1. Consider an investor facing a 35% marginal tax rate who purchases a tax-exempt issue with a yield of 4.75%. What is equivalent taxable yield of his investment?

    A. 1.84%

    B. 3.09%

    C. 5.32%

    D. 6.67%

    E. 7.31%

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