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If the marginal investor in tax-exempt securities faces a 25 percent marginal tax rate, what would the yield be on a ten-year state or local

If the marginal investor in tax-exempt securities faces a 25 percent marginal tax rate, what would the yield be on a ten-year state or local security if the yield on a ten-year Treasury note is 0.80 percent.Assume that they are otherwise similar in terms of credit risk and liquidity.

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