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A Corporate bond currently yield 8.00%. Municipal bound with the same risk, maturity, and liquidity currently yield 5.5%. At what tax rate would investors be

A Corporate bond currently yield 8.00%. Municipal bound with the same risk, maturity, and liquidity currently yield 5.5%. At what tax rate would investors be indifferent between the two bonds?

28.75%

35.00%

31.25%

29.69%

30.94%

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