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kolitchko kolitchko
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6 years ago
Suppose that your marginal federal income tax rate is 30%, the sum of your marginal state and local tax rates is 5%, and the yield on a thirty-year corporate bond is 10%. You would be indifferent between buying this corporate bond and buying a thirty-year municipal bond issued within your state (ignoring differences in liquidity, risk, and costs of information) if the municipal bond has a yield of
A) 6.5%.
B) 7.0%.
C) 9.5%.
D) 10.0%.
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Money, Banking, and the Financial System

Money, Banking, and the Financial System


Edition: 3rd
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vehmeinvehmein
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6 years ago
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kolitchko Author
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6 years ago
Thanks for your help!!
jcarter
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Yesterday
I appreciate what you did here, answered it right Smiling Face with Open Mouth
Marctheshark
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2 hours ago
Thanks
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