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O out of 1 points Question 19 Todd has the opportunity to buy a municipal bond with a coupon of 4.0% or a corporate bond
O out of 1 points Question 19 Todd has the opportunity to buy a municipal bond with a coupon of 4.0% or a corporate bond with a coupon of 6.0%. His marginal tax bracket is 35% and his average tax rate is 23%. What would you recommend? (Select the best response) Answers: A. Buy the municipal bond because its fully taxable equivalent yield is 6.15% B. Buy the corporate bond because it has the higher coupon rate c. Buy the corporate bond because the fully taxable equivalent yield of the municipal bond is 5.19%, which is less than the 6.0% on the corporate bond D. Buy the corporate bond because its fully taxable equivalent yield is 9.23%
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