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Suppose a Grand Rapids, Michigan municipal bond yields 4.5%. If a Michigan resident has a state income tax rate of 4% and a federal income

Suppose a Grand Rapids, Michigan municipal bond yields 4.5%. If a Michigan resident has a state income tax rate of 4% and a federal income tax rate of 25%, then a corporate bond would have to yield more than ______ to provide the higher after-tax yield.

6.79%

6.67%

6%

6.34%

5.97%

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