Problem
Many states also exempt interest on municipal bonds from state income taxes if those bonds are issued by that state or its local governments. Suppose that you buy municipal bonds issued in your state, and your federal marginal tax rate is 28 percent and your state marginal tax rate is 6 percent. If the yield on the bonds is 3.5 percent, what is the taxable equivalent yield?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.