Tax rates on the market for municipal bonds

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Suppose a candidate who runs on a platform of soak the rich wins the 2012 presidential election. After being elected, he or she persuades Congress to raise the top marginal tax rate on the federal personal income tax to 65%.

Use one graph to show the impact of this change in tax rates on the market for municipal bonds and another graph to show the impact on the market for U.S. Treasury bonds.

Reference no: EM13837853

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