Question
Suppose an investor in with a 28% tax rate considering buying a municipal bond with a yield of 4.5%. What is the yield on
Suppose an investor in with a 28% tax rate considering buying a municipal bond with a yield of 4.5%. What is the yield on a corporate bond that would generate the same after-tax yield as the municipal bond?
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Principles of managerial finance
Authors: Lawrence J Gitman, Chad J Zutter
12th edition
9780321524133, 132479540, 321524136, 978-0132479547
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