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You have two investment opportunities: Investment (1): 7% State of Illinois municipal bonds. Investment (2): 11% IBM corporate bonds. Which bond would provide you with

You have two investment opportunities: Investment (1): 7% State of Illinois municipal bonds. Investment (2): 11% IBM corporate bonds. Which bond would provide you with higher after-tax yield? Your marginal tax rate is 33 percent.

A. Municipal bond

B. IBM bond

C. Indifferent

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