Determine the nominal rate you would have to be paid on a


Determine the nominal rate you would have to be paid on a 20-year municipal bond to be indifferent between it and a 20-year corporate bond if the corporate bond has a nominal 8.48% yield. Assume you are in a 39.6% federal and 4.4% state tax bracket and inflation is expected to be 2.5%.

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Business Economics: Determine the nominal rate you would have to be paid on a
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