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8. You need to decide between investing in a Municipal Bond with a coupon rate of 4.5% and a Corporate Bond with a coupon rate
8. You need to decide between investing in a Municipal Bond with a coupon rate of 4.5% and a Corporate Bond with a coupon rate of 6.5%. Both bonds make semiannual coupon payments and have equal investment risk. If your marginal federal tax rate is 33%, which bond should you choose? At what marginal tax rate would you be indifferent to which bond you invested in? COrp (1-T) Muni
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