Question
If a corporate bond of equal risk and structure to a municipal bond trades at a 6% yield to maturity, what is the expected yield
If a corporate bond of equal risk and structure to a municipal bond trades at a 6% yield to maturity, what is the expected yield to maturity on the municipal bond if the investor's marginal tax rate is 25%
A. 7.50%
B. 6.00%
C. 4.50%
D. 2.70%
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Introduces Quantitative Finance
Authors: Paul Wilmott
2nd edition
470319585, 470319581, 978-0470319581
