A corporate bond currently yields 8.70%.Municipal bonds with the same risk,maturity,and liquidity currently yield 5.50%.At what tax rate would investors be indifferent between the two bonds? (Round your final answer to two decimal places. )
A) 41.56%
B) 41.93%
C) 36.78%
D) 33.10%
E) 30.90%
Correct Answer:
Verified
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