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6. A municipal bond trades at a 3.33% YTM whereas an equivalent risk and maturity corporate trades at 4.44%. Compute the implied marginal tax rate.

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6. A municipal bond trades at a 3.33% YTM whereas an equivalent risk and maturity corporate trades at 4.44%. Compute the implied marginal tax rate. If your marginal tax rate is 20% should you prefer the muni or the corporate. (Explain, and show your calculations)

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