Determine the equivalent taxable yield

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Reference no: EM131949718

A client in the 28 percent marginal tax bracket is comparing a municipal bond that offers a 6.1 percent yield to maturity and a similar-risk corporate bond that offers a 8.50 percent yield.

Determine the equivalent taxable yield. (Round your answer to 2 decimal places.)

Equivalent taxable yield %

Which bond will give the client more profit after taxes?

Corporate bond

Municipal bond

Reference no: EM131949718

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