A 7-year municipal bond yields 4.80%.Your marginal tax rate (including state and federal taxes) is 36.00%.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) 6.08%
B) 6.45%
C) 9.30%
D) 9.08%
E) 7.50%
Correct Answer:
Verified
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