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Evaluating the purchase of one of two bonds

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Reference no: EM131919226

Assume you are evaluating the purchase of one of two bonds. Bond A is a municipal bond with a yield to maturity of 5.75 percent. Bond B is a corporate bond with a yield to maturity of 7.25 percent. If you are in the 25 percent tax bracket, which bond would you choose? Explain your answer.

Reference no: EM131919226

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