Calculate tax equivalent rate of return-marginal tax rate

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Reference no: EM13834972

A municipal bond you are considering as an investment currently pays a 6.81 percent annual rate of return.

a. Calculate the tax equivalent rate of return if your marginal tax rate is 28 percent. (Round your answer to 3 decimal places. (e.g., 32.161)) Tax equivalent rate of return %

b. Calculate the tax equivalent rate of return if your marginal tax rate is 21 percent. (Round your answer to 3 decimal places. (e.g., 32.161)) Tax equivalent rate of return %

Reference no: EM13834972

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