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An investor is interested in adding a bond to a diversified portfolio of investments. There are two altematives with similar risks that the investor is

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An investor is interested in adding a bond to a diversified portfolio of investments. There are two altematives with similar risks that the investor is considering: A corporate bond that is paying 5.25% and a municipal bond that is paying 3.75%. The investor is in the 35% tax bracket. Calculate the taxable equivalent yield of this bond. Which bond should the investor buy

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