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6. Suppose you had the opportunity to buy either a municipal bond or a corporate bond, both of which have a face value and purchase

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6. Suppose you had the opportunity to buy either a municipal bond or a corporate bond, both of which have a face value and purchase price of S1,000. The municipal bond has coupon payments of S60 and a coupon rate of 6%. The corporate bond has coupon payments of S80 and an interest rate of 8%, which bond would you choose to purchase, assuming a 40% tax rate

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