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Bond A is a taxable bond and yields 1 2 % rate of return. Bond B is a tax - exempt bond and yields 8

Bond A is a taxable bond and yields 12% rate of return. Bond B is a tax-exempt bond
and yields 8% rate of return. If the current tax rate is 35%. Which bond is better? Why? And what is the tax rate at which the two bonds give you the same after-tax return?

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