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4) The yield on a corporate bond is 6% and it is currently selling at par value. A par value municipal bond with a coupon
4) The yield on a corporate bond is 6% and it is currently selling at par value. A par value municipal bond with a coupon rate of 4% is currently available. Which is the better investment for an investor whose marginal tax rate is 28% ? 5) A 10-year, $1,000 par value bond with a 5% semi-annual coupon is trading with a yield to maturity of 6%. What is this bond's current yield? What would the current yield be if the bond paid coupon payments annually
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