A:
A. 8.0%
B. 22.2%
C. 9.3%
D. 12.5%
Correct answer: D
"A" divides 1minustaxrate by the taxexempt yield, instead of vice versa, and the sloppy mathematician will not notice the orderofmagnitude problem and will read "8" as "8%". "B" divides the taxexempt yield by the tax rate, not 1minustaxrate. "C" is just a guess.
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