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An investor is in the 24% tax bracket and lives in a state with no income tax. He is trying to decide which of two
An investor is in the 24% tax bracket and lives in a state with no income tax. He is trying to decide which of two bonds to purchase. One is a 7% corporate bond that is selling at par. The other is a municipal bond with a 5% coupon that is also selling at select? Why? Would your answer change if this were an in-state municipal bond and the investor lived in a place with high state income taxes? Explain.
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