What Is the Taxable Equivalent Yield on a Municipal Bond

question 35

Multiple Choice

What is the taxable equivalent yield on a municipal bond with a yield to maturity of 4.5 percent for an investor in the 39 percent marginal tax bracket?

• A) 1.76 percent
• B) 4.50 percent
• C) 7.38 percent
• D) 11.54 percent

---

Definitions:

Issue Resolution

The process of solving problems or addressing concerns, often used in customer service and technical support contexts.

Chain Of Command

The formal line of authority within an organization, detailing how orders are passed down from higher to lower ranks.

Diversity

Differences among people in terms of identity, age, sex, race, physical ability, ethnicity, religious beliefs, values and mores, sexual orientation, and personality.

Identities

The qualities, beliefs, personality, looks, and expressions that make a person (or group) different from others.