[Solved] An Investor with a 50% Marginal Tax Rate Is Trying

Question 168
Multiple Choice
Question 168

An investor with a 50% marginal tax rate is trying to decide on a bond. Which of the following bonds offers the best tax-equivalent yield?

A) A corporate bond with an 8% yield to maturity.
B) A corporate bond with a 15% yield to maturity.
C) A municipal bond with a 5% yield to maturity.
D) A municipal bond with a 10% yield to maturity.

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