Suppose an investor is considering a corporate bond with a 7.17% before-tax yield and a municipal bond with a 5.93% before-tax yield.At what marginal tax rate would the investor be indifferent between investing in the corporate and investing in the municipal?
A) 15.4%
B) 23.7%
C) 39.5%
D) 17.3%
E) 12.4%
Correct Answer:
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