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You are financial advisor who has been asked by a client which of two bond issues offers the higher yield when taxes are taken into
You are financial advisor who has been asked by a client which of two bond issues offers the higher yield when taxes are taken into account. The first is corporate bond yielding 8.7 percent. The second is municipal bond yielding 6.1 percent. The client's tax rate is 32 percent. Indicate which bond offers the higher after-tax yield and show how you get the answer.
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