Given a fully taxable two-year, 8% annual coupon bond with a face value of $1,000 and with
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Given a fully taxable two-year, 8% annual coupon bond with a face value of
$1,000 and with annual coupon payments and an identical bond except that it is tax free, what would the yield and price on the tax-free bond have to be for an investor in a 35% tax bracket to be indifferent between the two bonds?
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