Taxable Equivalent Yield What Is the Taxable Equivalent Yield on a Municipal

question 98

Multiple Choice

Taxable Equivalent Yield 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

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