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Suppose agency bonds recently sold at a yield of 5.37%, while high-grade tax-exempts of comparable maturity offered 3.6% annually. If an investor receives the same

Suppose agency bonds recently sold at a yield of 5.37%, while high-grade tax-exempts of comparable maturity offered 3.6% annually. If an investor receives the same after-tax return from corporates and tax-exempts, what is that investors marginal rate of tax?

What is the Marginal tax rate? Answer = 32.96%

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