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Income from municipal bonds generally is exempt from federal, and sometimes state, income tax. For an investor with a marginal combined state and federal tax
Income from municipal bonds generally is exempt from federal, and sometimes state, income tax. For an investor with a marginal combined state and federal tax rate of a taxable return of would yield only of At that tax rate, a taxexempt return of is equivalent to a taxable return of Find the taxexempt rate of return that is equivalent to the given taxable rate of return for Sean.
tableInvestorMarginal Combined Tax Rate,Taxable Rate of ReturnSean
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