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Which investment would generate the greater after-tax yield

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Problem 1: If a taxpayer in the 32% tax bracket has the opportunity to invest in a taxable corporate bond that pays 4.8% interest or to invest in a tax-exempt municipal bond that pays 3% interest(assuming that all other elements of the two bonds, e.g., risk, are equal), which investment would generate the greater after-tax yield?

Reference no: EM132781038

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