What Would the Equivalent Taxable Yield Be on an Investment

question 33

Multiple Choice

What would the equivalent taxable yield be on an investment that offers a 6 percent tax exempt yield? Assume a marginal tax rate of 28 percent.

• A) 0.125 percent
• B) 7.20 percent
• C) 6.48 percent
• D) 8.33 percent
• E) 32.14 percent

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