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2. An investor is considering purchasing 2 bonds, which are identical in terms of credit risk and maturity. Bond A is a tax-exempt municipal bond

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2. An investor is considering purchasing 2 bonds, which are identical in terms of credit risk and maturity. Bond A is a tax-exempt municipal bond that has a 5% yield, and Bond B is a taxable corporate bond that has a 7% yield. If the investor has a marginal tax rate of 30%, which bond would be a more preferable purchase? ( 8 Points)

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