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A client in the 27 percent marginal tax bracket is comparing a municipal bond that offers a 5.5 percent yield to maturity and a similar-risk
A client in the 27 percent marginal tax bracket is comparing a municipal bond that offers a 5.5 percent yield to maturity and a similar-risk corporate bond that offers a yield of 8.05 percent. Determine the equivalent taxable yield(Round your answer to 2 decimal places.)
Which bond will give the client more profit after taxes?
corporate bond
municipal bond
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