You are advising a high income client and speaking on the advantages of investing in Municipal Bonds. Your client has a marginal tax rate of 30%. If Municipal Bonds are averaging a yield of 3.01%. What would be the Equivalent Taxable Yield?

You are advising a high income client and speaking on the advantages of investing in Municipal Bonds. Your client has a marginal tax rate of 30%. If Municipal Bonds are averaging a yield of 3.01%. What would be the Equivalent Taxable Yield?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter4: Income Exclusions

Section: Chapter Questions

Problem 58P

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Question

Ef 371.

You are advising a high income client and speaking on the
advantages of investing in Municipal Bonds. Your client has a
marginal tax rate of 30%. If Municipal Bonds are averaging a
yield of 3.01%. What would be the Equivalent Taxable Yield?

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