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I am now confused so please figure this questions out for me 3. An investor is trying to decide between investing in one of tw0

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I am now confused so please figure this questions out for me

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3. An investor is trying to decide between investing in one of tw0 xed income securities. One is subject to federal taxes, the other is not. The investor would invest an equal amount of money in either security. a Security 1: A \"near investment grade\" Municipal Bond that will mature one year 'om today. The bond has a face value of $1,000 and will pay an (annual) coupon of 3% one year from today. The bond currently (today) sells for $1,010. a Security 2: A U.S. Treasury Bill that is currently selling for 99.25% of its face value. This security does not pay a coupon, but will pay 100% of its face value 175 days from today. Assume that the relevant federal tax rate is 20% (ignore state taxes). A. What is the before-tax and after-tax one-year yield offered by the municipal security? B. What is the before-tax and after-tax annualized yield offered by the Treasury Bill

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