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Which one of these correctly defines equivalent taxable yield? Multiple choice question. The after - tax rate earned on either a taxable or nontaxable bond.
Which one of these correctly defines equivalent taxable yield?
Multiple choice question.
The aftertax rate earned on either a taxable or nontaxable bond.
The pretax rate required on a taxable bond to yield the same rate as a muni bond
The aftertax rate needed on a corporate bond to equal the aftertax rate on a muni bond
The pretax rate needed on a taxable bond to produce the same aftertax rate as a muni bond
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