Assuming the risk profiles are identical

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Reference no: EM131556092

You have an investment choice: $100 into 1) a tax-free muni bond that yields 5.696%, or 2) a property guaranteed to provide you with an 8% dividend yield. The dividend tax rate is 28.8%. Assuming the risk profiles are identical, which investment, if any, do you prefer? [hint: do not over think]

a. tax-free muni bond

b. the property

c. difference between the two

d. insufficient information

Reference no: EM131556092

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