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An investor in the 25% tax bracket is considering the IBM taxable bond that has a yield of 8% and a municipal bond has a
An investor in the 25% tax bracket is considering the IBM taxable bond that has a yield of 8% and a municipal bond has a yield of 5.5%. Both bonds have similar credit rating. Which bond should the investor purchase?
The IBM taxable bond.
Either bond because they have the same yield.
The municipal bond.
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