Assume the bonds are equally liquid

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A triple-AAA rated corporate 10-year bond is currently paying a yield of 5.25%. You can also purchase a triple-AAA rated municipal 10-year bond with a yield of 4.35%. Assume the bonds are equally liquid.

Assuming my tax rate is 15%, I would prefer the ________________ bond.

Assuming my tax rate is 39%, I would prefer the ________________ bond.

Reference no: EM131844670

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