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Karen is a wealthy retired investment advisor who is in the 35 percent tax bracket. She has a choice between investing in a high-quality municipal

Karen is a wealthy retired investment advisor who is in the 35 percent tax bracket. She has a choice between investing in a high-quality municipal bond paying 5 percent or a high-quality corporate bond paying 7 percent.

a. What is the after-tax return of each bond? Enter your answer as a percent, rounded to two decimal places. Tax-exempt municipal bond: _% Corporate bond:___ %

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