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A municipal bond yields 6.75% while a corporate bond on comparable maturity yields 9.0%. At what marginal tax rate would an investor be indifferent between

A municipal bond yields 6.75% while a corporate bond on comparable maturity yields 9.0%. At what marginal tax rate would an investor be indifferent between the two bonds?

Based on your answer, explain why high-tax-bracket investors are more inclined to invest in municipal bonds than low-bracket investors?

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