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Suppose you are in the 20% tax bracket and pay additional 5% in New Jersey state taxes. You are a resident of New Jersey state.

Suppose you are in the 20% tax bracket and pay additional 5% in New Jersey state taxes. You are a resident of New Jersey state. What is after-tax return for each bonds?

Bond A: U.S. treasury paying 10% for 15 years

Bond B: A New Jersey municipal paying 8% for 15 years

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