You Are Considering the Purchase of a Tax-Exempt Security That

question 53

Multiple Choice

You are considering the purchase of a tax-exempt security that is paying a yield of 10.08 percent. You are in the 28 percent tax bracket. To match this after-tax yield, you would consider taxable securities that pay

• A)31.1 percent.
• B)19 percent.
• C)12.5 percent.
• D)14 percent.

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