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Suppose that you need to choose between investing in a one-year municipal bond with a 2.25 percent yield and a one-year corporate bond. If your
Suppose that you need to choose between investing in a one-year municipal bond with a 2.25 percent yield and a one-year corporate bond. If your marginal federal income tax rate is 25 percent, how many percent should be the before-tax yield on the one-year corporate bond for you to be indifferent between the two bonds? Round your answer to two decimal places. QUESTION 18 A federal government deficit increases the quantity of loanable funds demanded at any prevailing interest rate, causing an shift in the demand schedule. O higher; inward
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