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Sara Nixon is looking for a fixed-income investment. She is considering two bond issues: a. A Treasury with a yield of 4.43% b. An in-state
Sara Nixon is looking for a fixed-income investment. She is considering two bond issues: a. A Treasury with a yield of 4.43% b. An in-state municipal bond with a yield of 3.16% Sara is in the 33% federal tax bracket and the 8% state tax bracket. Which bond would provide Sara with a higher tax-adjusted yield? The taxable equivalent yield on the Treasury bond is % (Round to two decimal places.)
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