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QUESTION 5 The yield on a corporate bond is 9%, and it is currently selling at par. The marginal tax rate is 30%. A par

QUESTION 5

The yield on a corporate bond is 9%, and it is currently selling at par. The marginal tax rate is 30%. A par value municipal bond with a coupon rate of 5.75% is available. Which provides a better return to the investor?

		the corporate bond
		the municipal bond
		they are equal

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