Which two factors must Roger consider when calculating the taxable equivalent yield for a municipal bond?
The bond has a tax-free yield of 5%.
Roger’s investment income increases an average of 7% each year.
Roger has realized long-term capital gains that qualify for a tax rate of 0%.
Roger owns stock that pays a 4% dividend.
Roger is in the 24% tax bracket.
Roger was in the 22% tax bracket last year.