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Dana intends to invest $ 4 4 , 0 0 0 in either a Treasury bond or a corporate bond. The Treasury bond yields 5
Dana intends to invest $ in either a Treasury bond or a corporate bond. The Treasury bond yields percent before tax, and the corporate bond yields percent before tax. Assume Dana's federal marginal rate is percent and she itemizes deductions.Required:a Assuming Dana's marginal state rate is percent, which of the two options should she choose?a How much interest aftertax would Dana earn by investing in the corporate bond?b If she were to move to another state where her marginal state rate would be percent, which of the two options should she choose?b How much interest aftertax would Dana earn by investing in the corporate bond as per requirement b
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