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2. Suppose you are offered a 30 -year corporate bond or a 30 -year municipal bond. The corporate bond will earn a yield of 7.3
2. Suppose you are offered a 30 -year corporate bond or a 30 -year municipal bond. The corporate bond will earn a yield of 7.3 percent while the municipal bond will earn a yield of 4.8 percent. For which of the tax rates faced by the following individuals is the municipal bond strictly preferred. a. A marginal tax rate of 35% b. A marginal tax rate of 10% c. A marginal tax rate of 66% d. A marginal tax rate of 24%
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