What is the municipal bond interest rate

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A one year zero-coupon municipal bond interest rate equals the afer tax rate of a 1 year zero-coupon US Treasury Security (USTS.) The interest rate on a USTS is i = 0.1. The capital gains tax rate on the USTS is r = 0.1. What is the municipal bond interest rate? Please give your answer to 2 decimal places.

Reference no: EM131073813

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