What is the equivalent taxable yield for an investor facing, Microeconomics

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What is the equivalent taxable yield for an investor facing

Question: a. What is the equivalent taxable yield for an investor facing a 40% marginal tax rate, and who can purchase a tax-exempt municipal bond with a yield of 7.2?

b. What are the limitations of using the equivalent taxable yield as a measure of relative value of a tax-exempt bond versus a taxable bond?

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Microeconomics: What is the equivalent taxable yield for an investor facing

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Microeconomics: What is the equivalent taxable yield for an investor facing

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