What is the taxable equivalent bond yield

Reference no: EM13289454

Nick is in the 35% tax bracket and he holds a municipal bond that pays a tax-exempt interest rate of 5%. What is the taxable equivalent bond yield?

A) 8.25%
B) 7.7%
C) 6.75%
D) 3.25%
E) 2.75%

Reference no: EM13289454

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