An investor in the 28 percent tax bracket is trying to


An investor in the 28 percent tax bracket is trying to decide which of the two bonds to purchase. One is corporate bond carrying an 8 percent coupon and selling at par. The other is a municipal bond with a 5 ½ percent coupon and it, too, sells at par. Assuming all other relevant factors are equal, which bond should the investor select.

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Financial Management: An investor in the 28 percent tax bracket is trying to
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