A Tax-Exempt Bond Is Priced to Yield 6

question 20

Multiple Choice

A tax-exempt bond is priced to yield 6.25%. If you are in the 28% tax bracket this bond would provide you with an equivalent taxable yield of ________.

• A)4.50%
• B)7.25%
• C)8.68%
• D)none of the answers given are correct

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