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You want to invest some money into bonds for the next year and have two different one year bond investments to choose from: a 5%
You want to invest some money into bonds for the next year and have two different one year bond investments to choose from: a 5% corporate bond or a tax-exempt municipal bond that has a coupon of 3%. The bonds are alike in all other aspects. Your tax bracket is 35%. Which is the most financially attractive?
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