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Sally is choosing between two bonds both of which mature in 15 years and have the same level of risk. Bond A is a municipal
Sally is choosing between two bonds both of which mature in 15 years and have the same level of risk. Bond A is a municipal bond that yields 7.20 percent. Bond B is a corporate bond that yields 10.00 percent. If Sally is in the 28 percent tax bracket, which bond should she select and why?
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