What is the yield on a taxable security

Reference no: EM13295738

A 6.0% 20-year municipal bond is currently priced at par. For a taxpayer in the 50% marginal tax bracket, what is the equivalent taxable yield (that is, what is the yield on a taxable security that would provide the same after-tax yield as the municipal bond)? Please show work, will rate high.

Reference no: EM13295738

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