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Fergie has the choice between investing in a state of New York bond at 6.6 percent and a Surething bond at 4.5 percent. Assuming that

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Fergie has the choice between investing in a state of New York bond at 6.6 percent and a Surething bond at 4.5 percent. Assuming that both bonds have the same non tax characteristics and that Fergie has a 30 percent marginal tax rate, in which bond should she invest? Forgie should invest in the

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