A Tax-Free Municipal Bond Pays an Effective Annual Rate of 7.2%.If

question 27

Multiple Choice

A tax-free municipal bond pays an effective annual rate of 7.2%.If your tax rate is 30%,then the effective annual rate that a comparable corporate bond would have to offer you to earn an equivalent after-tax return would be closest to:

• A)5.0%.
• B)7.2%.
• C)9.4%.
• D)10.3%.

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Definitions:

Medical Attention

The care and treatment provided by health professionals to individuals who have illness, injury, or other physical or mental health concerns.

Medical Emergencies

Situations requiring immediate medical attention due to a sudden or acute onset of a medical condition that poses an immediate threat to life or long-term health.

Anxiety

An emotion characterized by anxiety, tension, or discomfort generally in anticipation of a forthcoming event or due to an unpredictable result.

Hardy

Referring to an organism's ability to survive and reproduce under unfavorable environmental conditions.