Indifferent between taxable and tax-exempt bonds

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Reference no: EM131822405

If the yield on a taxable corporate bond is 8% and yield on a tax-free municipal bond is 6% what is the tax bracket at which investors are indifferent between taxable and tax-exempt bonds? (Do NOT enter % sign. If your answer is 0.0678 or 6.78% enter only 6.78. Round your answer to 2 decimal places.)

Reference no: EM131822405

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