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Paul has 13,000 that he wishes to invest in bonds. He can purchase Treasury bonds with a coupon rate of 4.7% or municipal bonds with
Paul has 13,000 that he wishes to invest in bonds. He can purchase Treasury bonds with a coupon rate of 4.7% or municipal bonds with a coupon rate of 2.7%. Paul lives in a state with no state income tax and has a marginal tax rate of 22%. Which investment will give Paul the higger annual earnings after taxes are considered?
Paul's income from the Treasury bonds aftertaxes is $?
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