You need to choose between investing in a one-year municipal bond with a 3.75 percent yield and a one-year corporate bon

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answerhappygod
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You need to choose between investing in a one-year municipal bond with a 3.75 percent yield and a one-year corporate bon

Post by answerhappygod »

You need to choose between investing in a one-year municipal
bond with a 3.75 percent yield and a one-year corporate bond with a
6 percent yield. If your marginal federal income tax rate is 35
percent and no other differences exist between these two
securities, which would you invest in?
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