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Suppose an investor with a tax bracket of 25% has a choice between a corporate bond with a 8.5% coupon and a municipal bond with
Suppose an investor with a tax bracket of 25% has a choice between a corporate bond with a 8.5% coupon and a municipal bond with a 6.75 % coupon. Assuming that the two bonds are of the same grade, the ___ bond is more attractive because the muni bond's equivalent taxable yield is A. muni; 8.44% B. muni: 9.00% OC. corporate: 8.44% OD. corporate; 9.00%
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