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You are in the 28 percent federal income tax bracket. A corporate bond offers you a 6.8 percent while a tax-exempt bond with the same
You are in the 28 percent federal income tax bracket. A corporate bond offers you a 6.8 percent while a tax-exempt bond with the same credit rating and term to maturity offers 4.1 percent. On the basis of taxation, which bond should be preferred? Explain your answer.
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