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5. Brian has hired you to start helping with his investment activity. He is deciding whether to put together a municipal bond portfolio or focus

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5. Brian has hired you to start helping with his investment activity. He is deciding whether to put together a municipal bond portfolio or focus on high grade corporate bonds for his fixed income allocation. Assume he is in a 30% marginal tax bracket. Give Brian an example of what kind of interest rate he would need to earn on a corporate bond portfolio to realize an after tax return that is better than the current market yield of 3% on a muni bond portfolio

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