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5. You are considering an investment in either a Corporate Bond or a Municipal Bond. The Corporate Bond offers a yield of 4.8%, while

5. You are considering an investment in either a Corporate Bond or a Municipal Bond. The Corporate Bond offers a yield of 4.8%, while the Municipal Bond offers a yield of 3.2%. Your marginal tax rate is 28%. a. Which bond is the more favorable option? b. What marginal tax rate would make you indifferent between the two bonds?

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