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An investor is currently in the 30 percent tax bracket and has two alternative investment opportunities: A bond issued by a corporation that has a
An investor is currently in the 30 percent tax bracket and has two alternative investment opportunities: A bond issued by a corporation that has a current yield to maturity of 8% or a Municipal bond with a YTM of 6% issued by the state Which is the better investment - please show the calculations so I can further understand. At what tax rate would this investor be indifferent between the corporation bond and the Municipal? Thank you in advance
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