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In order for an investor to compare the yields between taxable and tax-free bonds, an equivalent yield will need to be computed. For an investor
In order for an investor to compare the yields between taxable and tax-free bonds, an equivalent yield will need to be computed. For an investor in a 28% marginal tax rate, what is an equivalent tax-free yield for a taxable bond yielding 4.5%?
Group of answer choices
2.25%
2.98%
3.24%
4.10%
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