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An investor purchases one municipal and one corporate bond that pay rates of return of 6% and 8%, respectively. If the investor is in the
An investor purchases one municipal and one corporate bond that pay rates of return of 6% and 8%, respectively. If the investor is in the 25% marginal tax bracket, his or her after-tax rates of return on the municipal and corporate bonds would be ________ and ______, respectively.
A. 6%; 8% B. 4.5%; 8% C. 6%; 6% D. 4.5%; 6%
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