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5 pts Question 6 An investor wants to added some bonds to her portfolio. She is considering two bonds of equal credit quality. Bond A

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5 pts Question 6 An investor wants to added some bonds to her portfolio. She is considering two bonds of equal credit quality. Bond A is a municipal bond issued in her municipality while Bond B is a corporate bond. Bond A carries a yield of 2.25%, while Bond Bis yielding 3.00%. The investor is in the 32% tax bracket. On the basis of Taxable Equivalent Yield, which bond should she select? Bond B, because a 3.00% yield is better than a 2.25% yield Bond A, because the taxable equivalent yield of 3.31% exceed that of Bond B Bond B, because the 3.00% yield exceeds the taxable equivalent yield of Bond A Bond A, because the taxable equivalent yield of 2.88% is better than Bond B 5 pts Question 7 In our discussion of the capital market process I described the three key tasks performed by the capital markets team in the process of creating new securities. Describe those three roles. BIVAA. IEEE 1 x x, EE V TT 12pt Paragraph

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