单选题

An investor who has a 42% marginal tax rate is analyzing a tax-exempt bond that offers a yield of 3.74%. The taxable-equivalent yield of the bond is closest to:

A、 5.31%.
B、 6.45%.
C、 8.90%.

【正确答案】 B

【答案解析】

B is correct because the tax-equivalent yield of a tax-exempt security is