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Sara Nixon is looking for a fixed-income investment. She is considering two bond issues: a. A Treasury with a yield of 7.23% b. An in-state
Sara Nixon is looking for a fixed-income investment. She is considering two bond issues: a. A Treasury with a yield of 7.23% b. An in-state municipal bond with a yield of 5.65% Sara is in the 33% federal tax bracket and the 8% state tax bracket. Which bond would provide Sara with a higher tax-adjusted yield? The taxable equivalent yield on the Treasury bond is %. (Round to two decimal places.) The taxable equivalent yield on the in-state municipal bond is %. (Round to two decimal places.) Which bond would provide Wesley with a higher taxable equivalent yield? (Select the best choice below.) A. The taxable equivalent yield on the municipal bond is higher than the taxable equivalent yield on the Treasury bond. OB. The taxable equivalent yield on the Treasury bond is higher than the taxable equivalent yield on the municipal bond
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