Monday 11 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 25% tax bracket?
a. 4.0%
b. 7.5%
c. 8.0%
d. 9.5%

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