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please answer all parts A corporate (taxable) bond has a yield of 8% and a municipal bond has a yield of 6%, ceteris paribus Suppose

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A corporate (taxable) bond has a yield of 8% and a municipal bond has a yield of 6%, ceteris paribus Suppose that you are an investment advisor and you have a customer who wants to get your investment recommendation about these two bonds. Your customer is in a 40% tax bracket. Requirement 1: What is your customer's after-tax return on the corporate bond? Requirement 2: What is your customer's after-tax return on the municipal bond? Requirement 3: Which bond do you recommend to your customer? (if your answer is the corporate bond, fill in the cell with capital "C"; If your answer is the municipal bond, fill in the cell with capital "M".) Requirement 4: As an advisor, you would like figure out at what tax rate a bond investor would be indifferent between the two bonds %

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