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CTP · Question #512

(Topic 6) Given a corporate tax rate of 34%, a tax-exempt yield of 7% is equivalent to a taxable yield of:

The correct answer is C. 10.6%. See the full explanation below for the reasoning.

Question

  • (Topic 6)

Given a corporate tax rate of 34%, a tax-exempt yield of 7% is equivalent to a taxable yield of:

Options

  • A4.6%.
  • B7.0%.
  • C10.6%.
  • D34.0%.

How the community answered

(23 responses)
  • A
    4% (1)
  • B
    13% (3)
  • C
    83% (19)

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