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Motorhead Automotive Inc. issued a bond yields 8%. A muni bond of comparable maturity and credit quality yields 6%. For each marginal tax rate below,

  1. Motorhead Automotive Inc. issued a bond yields 8%. A muni bond of comparable maturity and credit quality yields 6%. For each marginal tax rate below, determine the after-tax yield of each bond and state which would be preferable for an investor in each of the marginal tax brackets. 0%, 20%, 25%, 30%

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