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Scenario 3 Security 1 : A taxable security that offers a before - tax yield of 6 . 7 percent, sold to an investor with

Scenario 3
Security 1: A taxable security that offers a before-tax yield of 6.7 percent, sold to an investor with a marginal tax rate of 20 percent.
Security 2: A tax-exempt security with a yield of 6 percent.
Security 1
Security 2
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