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Stvo You can invest in taxable bonds that are paying a yield of 8.4 percent or a municipal bond paying a yield of 6.95 percent.

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Stvo You can invest in taxable bonds that are paying a yield of 8.4 percent or a municipal bond paying a yield of 6.95 percent. Assume your marginal tax rate is 21 percent a. Calculate the after-tax rate of return on the taxable bond? (Round your answer to 2 decimal places. (e..., 32.16) b. Which security bond should you buy? a Rate of return The security bond one should buy is: b

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