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You need to choose between investing in a one-year municipal bond with a 6 percent yield a one-year corporate bond with a 9 percent yield.

  1. You need to choose between investing in a one-year municipal bond with a 6 percent yield a one-year corporate bond with a 9 percent yield. If your marginal federal income tax rate is 20 percent and no other differences exist between these two securities, which one would you invest in?

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