Answered: An investor is in a 30% tax bracket. If…

An investor is in a 30% tax bracket. If corporate bonds offer 6% yields, what must municipals offer for the investor to prefer them to corporate bonds? (Round your answer to 2 decimal places.)

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 9P

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An investor is in a 30% tax bracket. If corporate bonds offer 6% yields, what must municipals offer for the investor to prefer them to corporate bonds? (Round your answer to 2 decimal places.)

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