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Debt issued by southeastern corporation... Please show work, thank you! 16. Debt issued by Southeastern Corporation has a coupon of 10% and currently yields 9.00%.

Debt issued by southeastern corporation...
Please show work, thank you!
image text in transcribed
16. Debt issued by Southeastern Corporation has a coupon of 10% and currently yields 9.00%. A municipal bond of equal risk currently has a coupon of 6% and yields 8.00%. Your marginal tax bracket is 35%. Which investment is a better buy? A. Corporate bond B. Municipal bond C. None, they have the same yield

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