An investor in the 35 tax bracket may purchase a corporate

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An investor in the 35% tax bracket may purchase a corporate bond that is rated double A and is traded on the NYSE (the bond division). This bond yields 9%. The investor may also buy a double-A-rated municipal bond with a 5.85% yield. Why may the corporate bond be preferred? (Assume that the terms of the bonds are the same).

Reference no: EM13595612

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