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The interest on some municipal bonds is tax free, in contrast to the interest on corporate bonds. If the current annual interest rates on otherwise similar(i.e., maturity, credit risk, liquidity) municipal
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The interest on some municipal bonds is tax free, in contrast to the interest on corporate bonds. If the current annual interest rates on otherwise similar(i.e., maturity, credit risk, liquidity) municipal and corporate bonds are 1.48\%1.48% and 1.80\%1.80%, respectively, what is the implied tax rate?

User Limoragni
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Answer:

17.77%

Step-by-step explanation:

Please see attachment

The interest on some municipal bonds is tax free, in contrast to the interest on corporate-example-1
User Ceki
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