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Assume you are in the 39.6 percent tax bracket and purchase a 3.90 percent, tax-exempt...

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Finance

Assume you are in the 39.6 percent tax bracket and purchase a 3.90 percent, tax-exempt municipal bond. Calculate the taxable equivalent yield for this investment using the formula:

Taxable equivalent yield = Tax-exempt return / (1.0 Your tax rate)

what is the Taxable equivalent yield?

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