John Smith Is in the 28 Percent Tax Bracket

Question 122
Multiple Choice

John Smith is in the 28 percent tax bracket.If he were to purchase a $1,000 municipal bond that had a stated interest rate of 6.9%,the taxable equivalent yield would be: A) 6.900%. B) 8.261%. C) 9.583%. D) 12.105%. E) 14.625%.