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After-Tax Yield You need to choose between investing in a one-year municipal bond with a 7 per- cent yield and a one-year corporate bond with

After-Tax Yield

You need to choose between investing in a one-year municipal bond with a 7 per- cent yield and a one-year corporate bond with an 11 percent yield. If your marginal federal income tax rate is 30 percent and no other differences exist between these two securities, which would you invest in?

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