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Jake is looking for a fixed-income investment. He is considering two bond issues: a. A Treasury with a yield of11.29% b. An in-state municipal bond

Jake is looking for a fixed-income investment. He is considering two bond issues:

a. A Treasury with a yield of11.29%

b. An in-state municipal bond with a yield of 9.34% Jake is in the 32% federal tax bracket and the 6% state tax bracket. Which bond would provide him with a higher tax-adjusted yield?

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