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An investor is in the 24% marginal tax bracket. The investor wants to invest $100,000 in a bond mutual fund. The choices are a total

  1. An investor is in the 24% marginal tax bracket. The investor wants to invest $100,000 in a bond mutual fund. The choices are a total bond market index fund now paying 2.4%, or a municipal tax-free bond fund paying 8%. Calculate which fund is the better choice for this investor.

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