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A municipal bond has a coupon rate of $5\mathrm{.}86$ percent and a YTM of $5\mathrm{.}55$ percent. If an investor has a marginal tax rate of $30$ percent, what is the equivalent pretax yield on a taxable bond?

Multiple Choice

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$4\mathrm{.}10\%$

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$3\mathrm{.}89\%$

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$8\mathrm{.}37\%$

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$6\mathrm{.}02\%$

$23$

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