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You are considering investing in either XYZ bonds that yield 6 % or state of California municipal bonds that yield 4 . 0 % .

You are considering investing in either XYZ bonds that yield

6 %

or state of

California municipal bonds that yield

4.0 % .

What should be your marginal tax rate

such that you will be indifferent between these two investments based on after tax

returns

(

ignore the risk

) ?

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