A 5.5% 20-year municipal bond is currently priced to yield 7.2%.For a taxpayer in the 33% marginal tax bracket,this bond would offer an equivalent taxable yield of:
A)8.20%.
B)10.75%.
C)11.40%.
D)4.82%.
E)none of the above.

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The Answer of A 5.5% 20-year municipal bond is currently priced to yield 7.2%.For a taxpayer in the 33% marginal tax bracket,this bond would offer an equivalent taxable yield of:
A)8.20%.
B)10.75%.
C)11.40%.
D)4.82%.
E)none of the above.

A 55% 20-Year Municipal Bond Is Currently Priced to Yield 7