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You can invest in a corporate bond with a 9.5% yield or invest in a municipality bond with 7.75% yield. If you are in the

You can invest in a corporate bond with a 9.5% yield or invest in a municipality bond with 7.75% yield. If you are in the 25% tax bracket, which bond would you invest in?

Corporate bond

Municipality bond

I would be indifferent because both will give me the same after tax return.

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