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An Investor Is Trying to Decide Between a Muni Paying

Question 29

Multiple Choice

An investor is trying to decide between a muni paying 5.75 percent or an equivalent taxable corporate paying 8.25 percent. What is the minimum marginal tax rate the investor must have to consider buying the municipal bond?


A) 80.00 percent
B) 20.00 percent
C) 25.00 percent
D) 66.67 percent
E) 30.00 percent

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