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A taxable bond is selling at a yield to maturity (YTM) of 7.5%, and a similar quality tax-free bond is selling at a YTM

A taxable bond is selling at a yield to maturity (YTM) of 7.5%, and a similar quality tax-free bond is selling at a YTM of 5.2%. Which one of the following combined federal and state marginal tax brackets is the lowest bracket at which an investor living in the bond-issuing state should choose the tax-free bond over the taxable bond?

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