Taxable bond yield-investor be indifferent between the bonds

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Reference no: EM13825895

Assume taxable bond yields 8.25 percent and a comparable municipal bond yields 6.85 percent. At what tax rate would an investor be indifferent between the bonds?

18.31%

16.97%

20.44%

12.41%

15.65%

Reference no: EM13825895

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