If you're in the 15% marginal tax bracket,what is the equivalent taxable yield on an 8% municipal bond?

Name: If you're in the 15% marginal tax bracket,what is the equivalent taxable yield on an 8% municipal bond?
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Question

Quizplus · Accepted Answer

The equivalent taxable yield on a municipal bond for someone in the 15% tax bracket can be calculated using the formula: Taxable Equivalent Yield = Tax-Free Municipal Bond Yield / (1 - Tax Rate). Plugging in the numbers: 8% / (1 - 0.15) = 8% / 0.85 = 9.41%.

If You're in the 15% Marginal Tax Bracket,what Is the Equivalent