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Bhad Bhabie plans to invest $100,000 in either a corporate bond paying 3.5% or a tax-exempt bond with a 2.5% interest rate. The bonds have

Bhad Bhabie plans to invest $100,000 in either a corporate bond paying 3.5% or a tax-exempt bond with a 2.5% interest rate. The bonds have an equivalent level of risk. Bhad Bhabie has a 30% marginal tax rate and wants to maximize her after-tax earnings. 



What bonds should Bhad Bhabie invest in assuming that she wants to maximize her after-tax return?

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