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. In order for you to be indifferent between the after-tax returns on a taxable corporate bond paying 8.5% and a tax-exempt municipal bond paying

. In order for you to be indifferent between the after-tax returns on a taxable corporate bond paying 8.5% and a tax-exempt municipal bond paying 6.12%, what would your tax bracket need to be?

PLEASE SHOW ALL WORK

A. 28%

B. 72%

C. Cannot tell from the information given

D. 15% E. 33%

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