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A treasurer has excess cash for the day and want to choose between the following two investments and the firms marginal tax rate is 21%:
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A treasurer has excess cash for the day and want to choose between the following two investments and the firms marginal tax rate is 21%:
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Investing in a 30-day Treasury Bill that has a face amount of 100,000 and trades at a 2.5% discount, or
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Investing in a municipal money market instrument that has a Bond Equivalent Yield of 2.20% Which investment has the highest after-tax bond equivalent yield?
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