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Assume you are in the 33 percent tax bracket and purchase a municipal bond with a...

Assume you are in the 33 percent tax bracket and purchase a municipal bond with a yield of 6.25 percent. Use the formula presented in chapter 11 of your textbook to calculate the taxable equivalent yield for this investment. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

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Municipal bond is exempt from fax. yield on municipas bond = 6-25% Tax equivalent yield = yield on municipal bond - - Tax Whe

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