An investor is in the 28 percent income tax bracket and


An investor is in the 28 percent income tax bracket and earn 3.3 percent on a non-taxable bond. What is comparable yield on a taxable bond? If the same investor can earn 5.9 percent on a taxable bond what must be the yield on a non-taxable bond so that the after tax yield are equal?

 

 

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Finance Basics: An investor is in the 28 percent income tax bracket and
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