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Identical tax-exempt bond

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A taxable bond with a coupon rate of 8.00% has a market price of 98.90% of par. The bond matures in 12.00 years and pays semi-annually. Assume an investor has a 36.00% marginal tax rate. The investor would prefer otherwise identical tax-exempt bond if it's yield to maturity was more than _____%

A taxable bond with a coupon rate of 7.00% has a market price of 98.02% of par. The bond matures in 11.00 years and pays semi-annually. Assume an investor has a 26.00% marginal tax rate. The investor would prefer otherwise identical tax-exempt bond if it's yield to maturity was more than _____%

Reference no: EM132473753

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