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Hui is currently considering investing in municipal bonds that earn 6 percent interest, or in taxable bonds issued by the Coca-Cola Company that pay 8

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Hui is currently considering investing in municipal bonds that earn 6 percent interest, or in taxable bonds issued by the Coca-Cola Company that pay 8 percent. Required: a. If Hui's tax rate is 22 percent, which bond should he choose? b. Which bond should he choose if his tax rate is 32 percent? c. At what tax rate would he be indifferent between the bonds? d. What strategy is this decision based upon? Complete this question by entering your answers in the tabs below. If Hui's tax rate is 22 percent, which bond should he choose? Daniel is considering selling two stocks that have not fared well over recent years. A friend recently informed Daniel that one of his stocks has a special designation, which allows him to treat a loss up to $50,000 on this stock as an ordinary loss rather than the typical capital loss. Daniel figures that he has a loss of $60,000 on each stock. If Daniel's marginal tax rate is 35 percent and he has $120,000 of other capital gains (taxed at 15 percent), what is the tax savings from the special tax treatment

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