What would the equivalent taxable yield be on an investment that offers a 6 percent tax exempt yield? Assume a marginal tax rate of 28%.
A) 0.125%
B) 7.20%
C) 6.48%
D) 8.33%
E) 32.14%

Name: What would the equivalent taxable yield be on an investment that offers a 6 percent tax exempt yield? Assume a marginal tax rate of 28%. A) 0.125% B) 7.20% C) 6.48% D) 8.33% E) 32.14%
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Quizplus · Accepted Answer

Equivalent taxable yield = .06/(1 - .28)= .06/.72 = 8.33%

What Would the Equivalent Taxable Yield Be on an Investment