In 2021, a 3.6 percent coupon bond issued by the State of Washington sells for...
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Accounting
In 2021, a 3.6 percent coupon bond issued by the State of Washington sells for $1,000. What coupon rate on a corporate bond selling at $1,000 par value would produce the same after-tax return to the investor as the municipal bond if the investor is in the 35 percent marginal tax bracket?
| 4.5 percent | ||
| 5.5 percent | ||
| 6.6 percent | ||
| 7.3 percent | ||
| 9.7 percent |
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