Friday 8 June 2012

If you compare the yield of a municipal bond with that of a Treasury bond,

If you compare the yield of a municipal bond with that of a Treasury bond, what is the equivalent before-tax yield of a municipal bond yielding 6% per year for an investor in the 36% tax bracket (round to nearest .1%)?
a.9.4%
b.8.1%
c.7.7%
d.6.3%
 

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