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28. Debt issued by Southeastern Corporation has a coupon of 10% and currently yields 7.00%....

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Finance

28. Debt issued by Southeastern Corporation has a coupon of 10% and currently yields 7.00%. A municipal bond of equal risk currently has a coupon of 6% and yields 6.00%. Your marginal tax bracket is 35%. Which investment is a better buy?

A. Corporate bond

B. Municipal bond

C. None, they have the same yield

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