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The YTM on a municipal bond is 2.23% and the yield on an equivalent risk corporate bond is 2.84%. Compute the implied marginal tax rate.
The YTM on a municipal bond is 2.23% and the yield on an equivalent risk corporate bond is 2.84%. Compute the implied marginal tax rate. In other words, at what marginal tax rate would an investor be indifferent between the two securities? A. 21.5% B. 25% C. 33.5% O D.35%
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