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A client in the 34 percent marginal tax bracket is comparing a municipal bond that offers a 5.50 percent yield to maturity and a similar-risk

A client in the 34 percent marginal tax bracket is comparing a municipal bond that offers a 5.50 percent yield to maturity and a similar-risk corporate bond that offers a 6.95 percent yield.

Determine the equivalent taxable yield

Which bond will give the client more profit after taxes?

municipal bond
corporate bond

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