To Calculate the Taxable Equivalent Yield on a Municipal Bond

question 86

Multiple Choice

To calculate the taxable equivalent yield on a municipal bond:

• A)divide your tax rate by the result of 1.0 minus your tax-exempt rate
• B)multiply your tax rate by your tax-exempt rate of return
• C)divide your tax rate by your tax-exempt rate of return
• D)divide the tax-exempt rate of return by your tax rate
• E)divide the tax-exempt rate of return by the result of 1.0 minus your tax rate

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