An investor is in the 28 percent income tax bracket

Reference no: EM13687406

An investor is in the 28 percent income tax bracket and can earn 3.3 percent on a non-taxable bond. What is the comparable yield on a taxable bond? If this same investor can earn 5.9 percent on a taxable bond, what must be the yield on a nontaxable bond so that the after- tax yields are equal?

Reference no: EM13687406

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