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Stumped by a homework question. At what point would an investor be indifferent between a Bridgford corporate bond yielding 8.
Stumped by a homework question. Could use some help.
At what point would an investor be indifferent between a Bridgford corporate bond yielding 8.0 percent and a tax-free municipal bond of equal financial strength if the investor's marginal tax rate is 25 percent? (What would the equivilent Muni bond yield be at the point of indifference?)