medium · Certified Financial Planner Investment Planning
An investor in the 32% marginal bracket is evaluating a municipal bond with a 3.90% yield.
If the investor is also subject to the 3.8% Net Investment Income Tax (NIIT), what is the taxable equivalent yield (TEY)?
- 3.90%
- 5.05%
- 5.74%
- 6.07%
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