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An investor purchases one municipal bond and one corporate bond that pay rates of return of 9 % and 1 0 . 5 % ,

An investor purchases one municipal bond and one corporate bond that pay rates of return of 9% and 10.5%, respectively. If the investor is in the 20% tax bracket, his after-tax rates of return on the municipal and corporate bonds would be, respectively
Multiple Choice
10.80% and 8.40%
9% and 8.40%
9% and 10.5%
7.20% and 10.5%
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