On March 28, 2008, 5 year AAA munis were offering 3 04 4 14 73 43 of the 5 year corporate AAA yields Therefore, (1 ) 0 7343, which means that the marginal investors tax rate was 26 57 ...

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On March 28, 2008, 5-year AAA munis were offering 3.04%/4.14% 73.43% of the 5-year corporate AAA

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On March 28, 2008, 5-year AAA munis were offering 3.04%/4.14% ≈ 73.43% of the 5-year corporate AAA yields. Therefore, (1 − τ) ≈ 0.7343, which means that the marginal investor’s tax rate was τ ≈ 26.57%.

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Corporate Finance An Introduction

ISBN: 9780321277992

1st Edition

Authors: Ivo Welch

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Question Posted: Oct 25, 2024 08:02 AM

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On March 28, 2008, 5-year AAA munis were offering 3.04%/4.14% 73.43% of the 5-year corporate AAA

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Corporate Finance An Introduction

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