You are considering the purchase of a tax-exempt security that is paying a yield of 10.08 percent. You are in the 28 percent tax bracket. To match this after-tax yield, you would consider taxable securities that pay
A)31.1 percent.
B)19 percent.
C)12.5 percent.
D)14 percent.

Question

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The Answer of You are considering the purchase of a tax-exempt security that is paying a yield of 10.08 percent. You are in the 28 percent tax bracket. To match this after-tax yield, you would consider taxable securities that pay
A)31.1 percent.
B)19 percent.
C)12.5 percent.
D)14 percent.

You Are Considering the Purchase of a Tax-Exempt Security That