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Solve 2 1 is solved an provided P2 (15 points): A taxable bond has a yield of 8%, and a municipal bond has a yield

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Solve 2
1 is solved an provided
P2 (15 points): A taxable bond has a yield of 8%, and a municipal bond has a yield of 6%. If you are in a 40% tax bracket, which bond do you prefer? At what tax rate would you be indifferent between the two bonds? *

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