A bond issued by the State of Pennsylvania provides a 4.25% 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) 7.19%
B) 8.11%
C) 6.54%
D) 7.98%
E) 5.43%
Correct Answer:
Verified
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