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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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