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Assume a corporate bond has the yield to maturity (YTM) of 10.5% and is taxable. Further assume that there is also a public bond that

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Assume a corporate bond has the yield to maturity (YTM) of 10.5% and is taxable. Further assume that there is also a public bond that has the yield of maturity (YTM) of 7,8%. What is the marginal tax rate here? O 31.28% O 74.29% 25.71% O 68.72% Question 20 2.86 pts Same facts as Question 8: which of the following will be true if the tax rate is 19.88%? The investor will prefer government bonds since it is free of taxation. The investor will prefer government bonds since the after-tax payoff will be higher. The investor will prefer corporate bonds since it is free of taxation The investor will prefer corporate bonds because the after-tax payoff will be higher

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