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You can invest in taxable bonds that are paying a yield of 9.8 percent or...

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Finance

You can invest in taxable bonds that are paying a yield of 9.8 percent or a municipal bond paying a yield of 8.05 percent. Assume your marginal tax rate is 21 percent. a. Calculate the after-tax rate of return on the taxable bond? (Round your percentage answers to 2 decimal places. (e.g., 32.16)) b. Which security bond should you buy?

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a. Rate of return The security bond one should buy is: b

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