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Preston is in the 30% tax bracket and he holds a municipal bond that pays a tax-exempt interest rate of 10%. What is the taxable

Preston is in the 30% tax bracket and he holds a municipal bond that pays a tax-exempt interest rate of 10%. What is the taxable equivalent bond yield?

A. 21.0%

B. 10.43%

C. 9.42%

D. 30.0%

E. 14.29%

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