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What is the equivalent taxable yield

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Reference no: EM132850731

Question - An investor is in the 32% tax bracket and holds municipal bonds with an 4% yield-to-maturity. What is the equivalent taxable yield?

A. 5.10%

B. 4.21%

C. 5.88%

D. 4.00%

E. None of the above.

Reference no: EM132850731

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