The taxable equivalent yield on a 7 1/2 percent tax-exempt municipal bond for a?

Question

person in the 31 percent tax bracket is ___ percent.

a. 31.00

b. 23.50

c. 10.87

d. 7.50

Answer 1

c.  10.87%

because .075/.69 = .1087

or .1087 x .69 = .075