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Carol is debating between purchasing a taxable bond yielding 6% or a municipal bond yielding 4.2%. She is in the 28% federal tax bracket and 6% state tax bracket. The municipal bond is exempt from federal and state taxes. What is the municipal bond's taxable equivalent yield based on this information?

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Carol is debating between purchasing a taxable bond yielding 6% or a municipal bond yielding 4.2%. She is in the 28% federal tax bracket and 6% state tax bracket. The municipal bond is exempt from federal and state taxes. What is the municipal bond's taxable equivalent yield based on this information?






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