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Derrick is deciding between investing in a municipal bond with an interest rate of 2 . 3 7 % and a corporate bond. Derrick's marginal

Derrick is deciding between investing in a municipal bond with an interest rate of

2.37 %

and a corporate bond. Derrick's marginal tax rate is

21 % .

For what interest rate on the corporate bond will Derrick be indifferent between investing in the municipal bond and the corporate bond?

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