A 7-year municipal bond yields 4.8%.Your marginal tax rate (including state and federal taxes) is 39.00%.What interest rate on a 7-year corporate bond of equal risk would provide you with the same after-tax return? (Round your final answer to two decimal places. )
A) 9.60%
B) 7.63%
C) 8.34%
D) 6.45%
E) 7.87%
Correct Answer:
Verified
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