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Paul has $8,000 that he wishes to invest in bonds. He can purchase Treasury bonds with a coupon rate of 8.8% or municipal bonds with
Paul has $8,000 that he wishes to invest in bonds. He can purchase Treasury bonds with a coupon rate of 8.8% or municipal bonds with a coupon rate of 7.4%. Paul lives in a state with no state income tax and has a marginal tax rate of 24%. Which investment will give Paul the higher annual earnings after taxes are considered?
Paul's income from the Treasury bonds after taxes is $ ______. (Round to the nearest dollar.)
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