Assume you are in the 28 percent tax bracket and purchase a 3.50 percent municipal bond. calculate the taxable equivalent yield for this investment. (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.) taxable equivalent yield %

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10 July, 07:38

Assume you are in the 28 percent tax bracket and purchase a 3.50 percent municipal bond. calculate the taxable equivalent yield for this investment. (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.) taxable equivalent yield %

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Davenport · Answer 1

The taxable equivalent yield % is. 98. You get this answer by converting 3.50 into decimal % form, which is. 0350. You then take that number times 28 and come with. 98. That gives you the answer of having a 98% taxable equivalent yield %.