You are considering an investment in a municipal bond that has a yield of 1 percent. Your tax rate is 27.50 percent. What is your taxable equivalent yield? (Round your answer to 2 decimal places.)
a. 5.89%
b. 3.93%
c. 1.97%
d. 1.38%
e. 4.43%

Question

03-07-2024
Business

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You are considering an investment in a municipal bond that has a yield of 1 percent. Your tax rate is 27.50 percent. What is your taxable equivalent yield? (Round your answer to 2 decimal places.)
a. 5.89%
b. 3.93%
c. 1.97%
d. 1.38%
e. 4.43%

Sagot :

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