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7 You are considering purchasing a municipal bond that yields 4.25%. You can also buy a taxable bond that pays 6.50%. If your total marginal

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7" You are considering purchasing a municipal bond that yields 4.25%. You can also buy a taxable bond that pays 6.50%. If your total marginal tax rate is 28%, which bond yields a better return? At what tax rate would you be indifferent between the two bonds

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