Which bond will give the client more profit after taxes

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Reference no: EM131976699

A client in the 24 percent marginal tax bracket is comparing a municipal bond that offers a 4.8 percent yield to maturity and a similar-risk corporate bond that offers a 6.60 percent yield.

Determine the equivalent taxable yield. (Round your answer to 2 decimal places.)

Equivalent taxable yield %

Which bond will give the client more profit after taxes?

Municipal bond

Corporate bond

Reference no: EM131976699

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