A 5-year corporate bond yields 8.00%.A 5-year municipal bond of equal risk yields 6.5%.Assume that the state tax rate is zero.At what federal tax rate are you indifferent between the two bonds? (Round your final answer to two decimal places. )
A) 18.94%
B) 21.00%
C) 20.25%
D) 21.38%
E) 18.75%
Correct Answer:
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