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Taxpayer A and Taxpayer B have the opportunity to invest in either a taxable corporate bond or a tax-exempt municipal bond. The corporate bond has
Taxpayer A and Taxpayer B have the opportunity to invest in either a taxable corporate bond or a tax-exempt municipal bond. The corporate bond has a 9% stated interest rate, and the municipal bond has a 6.5% stated interest rate. Based solely on after-tax rates of return, which bond should Taxpayer A invest in if her marginal tax rate is 32% ? Which bond should Taxpayer B invest in if his marginal tax rate is 24 % ? (Must show all calculations to receive any credit) Edit View Insert Format Tools Table 12pt Paragraph BIUAT
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