Sally is choosing between two bonds both of which mature in, Financial Econometrics

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Sally is choosing between two bonds both of which mature in

Sally is choosing between two bonds both of which mature in 15 years and have same level of risk. Bond A is a municipal bond that yields 5.75%. Bond B is a corporate bond that yields 7.75%. If Sally is in the 28% tax bracket, which bond should she select and why?

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Financial Econometrics: Sally is choosing between two bonds both of which mature in

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Financial Econometrics: Sally is choosing between two bonds both of which mature in

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