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PROBLEM 1 Corporate bonds issued by Johnson Healthcare currently yield 8 percent. a. If an investor is in the 30 percent tax bracket, what is

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PROBLEM 1 Corporate bonds issued by Johnson Healthcare currently yield 8 percent. a. If an investor is in the 30 percent tax bracket, what is the bond's after-tax yield? b. Municipal bonds of equal risk currently yield 6 percent. At what tax rate would an investor be indifferent between these two bonds? c. Which bond should an investor in the 30 percent tax bracket invest in

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