equivalent taxable yield on a municipal bond.

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Three​ friends, Jodie,​ Natalie, and​ Neil, have asked you to determine the equivalent taxable yield on a municipal bond. The​ bond’s current yield is 4.55 percent with five years left until maturity. Jodie is in the 15 percent marginal tax​ bracket, Natalie is in the 25 percent​ bracket, and Neil is in the 35 percent bracket. Calculate the equivalent taxable yield for your three friends. Assuming a similar AAA corporate bond yields 5.21 ​percent, which of your friends should purchase the municipal​ bond?

The equivalent taxable yield for Jodie who has a 15 percent marginal tax bracket is ____%

 
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