A financial advisor recommends that you add some municipal bonds to your portfolio because of...
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A financial advisor recommends that you add some municipal bonds to your portfolio because of their tax advantages. You currently have corporate bonds with a yield of 8.20%.How much do the municipal bonds need to yield for you to consider them equivalent to the corporates (assuming similar risks/ratings for each) if you have a marginal tax rate of 25.00%.(a)10.93%(b)9.07%(c)5.60%(d)7.07%(e)6.15%
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