What is the equivalent tax free yield of a taxable 8 bond


1. What is the equivalent tax free yield of a taxable 8% bond of the tax rate is 30%?

2. What is the equivalent taxable yield for a 6% tax exempt bond at the same 30% tax rate?

3. At what tax rate are you indifferent between a 9% taxable and a 6% tax exempt bond.

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Financial Management: What is the equivalent tax free yield of a taxable 8 bond
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