Series 7 - General Securities Representative Exam

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What is the tax equivalent yield of an 6% GO bond for an investor in the 35% tax bracket?

4.44%
A
9.23%
B
6.00%
C
7.62%
D

Explanations

TEY formula muni yield (6%) / 100% - tax bracket (35%) = 6/65 = 9.23%

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