A bond issued by the State of Pennsylvania provides a 5.75% yield.What yield on a Synthetic Chemical Company bond would cause the two bonds to provide the same after-tax rate of return to an investor in the 35.00% tax bracket?
A) 9.02%
B) 11.06%
C) 8.85%
D) 9.91%
E) 7.70%
Correct Answer:
Verified
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