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Jane Smith is in the 20 percent personal tax bracket. She is considering investing in HCA (taxable) bonds that carry a 10 percent interest rate.

Jane Smith is in the 20 percent personal tax bracket. She is considering investing in HCA (taxable) bonds that carry a 10 percent interest rate. Suppose Twin Cities Memorial Hospital has issued tax-exempt bonds that have an interest rate of 17%. With all else the same, should Kim buy the HCA or the Twin Cities bonds?

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