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Question 6 5 pts A municipal bond has yield to maturity of 3.94 percent while a comparable corporate bond has yield to maturity of 5.33
Question 6 5 pts A municipal bond has yield to maturity of 3.94 percent while a comparable corporate bond has yield to maturity of 5.33 percent. Which of these two bonds will an investor with a marginal tax rate of 25 percent choose to invest in? The municipal bond because it offers the investor a higher after-tax yield to maturity than the corporate bond. The corporate bond because it offers the investor a higher nominal yield to maturity than the municipal bond. The corporate bond because it offers the investor a higher after-tax yield to maturity than the municipal bond. The municipal because it offers the investor a higher nominal yield to maturity than the corporate bond
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