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An investor purchases one municipal and one corporate bond that pay rates of return of 8% and 10%, respectively. If the investor is in the

An investor purchases one municipal and one corporate bond that pay rates of return of 8% and 10%, respectively. If the investor is in the 20% marginal tax bracket, his or her after-tax rates of return on the municipal and corporate bonds would be ________ and ______, respectively.

A.

8%; 10%

B.

8%; 8%

C.

6.4%; 8%

D.

6.4%; 10%

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