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An analyst is looking into several options for investing. The three bonds below are all 5 years to maturity and rated A (single A) by

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An analyst is looking into several options for investing. The three bonds below are all 5 years to maturity and rated A ("single A) by the major ratings agencies. The effective tax rate is 15%. Which one is the best investment purely from a yield perspective? A. A municipal bond that is partially taxable at an 8% tax rate with a 3.70% yield. B. A tax-exempt municipal bond with a 3.75% yield. C. A corporate bond with a 4.30% yield. D. Not enough information is provided

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