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Carter Corporation has some money to invest, and its treasurer is choosing between City of Chicago municipal bonds and U . S . Treasury bonds.
Carter Corporation has some money to invest, and its treasurer is choosing between City of Chicago municipal bonds and US Treasury bonds. Both have the same maturity, and they are equally risky and liquid. If Treasury bonds yield and Carter's marginal income tax rate is what yield on the Chicago municipal bonds would make Carter's treasurer indifferent between the two?
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