A 7-year municipal bond yields 4.8%.Your marginal tax rate (including state and federal taxes) is 27%.What interest rate on a 7-year corporate bond of equal risk would provide you with the same after-tax return?
A) 5.64%
B) 5.93%
C) 6.25%
D) 6.58%
E) 6.90%
Correct Answer:
Verified
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