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Assume an investor in the 28.00% tax bracket is considering purchasing either a municipal bond or a corporate bond that are the exact same in
Assume an investor in the 28.00% tax bracket is considering purchasing either a municipal bond or a corporate bond that are the exact same in all respects (maturity, risks, coupon payment, etc.) except for their yields. If the municipal bond is yielding 2.52% and the corporate bond is yielding 3.50%, would the investor prefer the municipal bond or the corporate bond? Municipal bond Indifferent between the two bonds Not enough information Corporate bond
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