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An investor in a 20% tax bracket both for interest income and capital gains, buys a one period taxable security paying 10% at par. How

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An investor in a 20% tax bracket both for interest income and capital gains, buys a one period taxable security paying 10% at par. How much will he pay for a one year (tax free) municipal bond paying a coupon of 7% ? (hint- assume a price P and solve for it)

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