3. (16 Pts) Comparing taxable and tax-exempt bonds: a. An investor purchases one municipal and...
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3. (16 Pts) Comparing taxable and tax-exempt bonds: a. An investor purchases one municipal and one corporate bond that pay rates of return of 8% and 10%, respectively. If the investor is in the 20% marginal tax bracket, his or her after-tax rates of return on the municipal and corporate bonds would be and respectively. b. An investor purchases one municipal and one corporate bond that pay rates of return of 7.5% and 10.3%, respectively. If the investor is in the 25% marginal tax bracket, his or her after-tax rates of return on the municipal and corporate bonds would be and respectively. (16 Pts) Reading Listings Tables: c. If a Treasury note has a bid price of $975, the quoted bid price in the Wall Street Journal would be d. If a Treasury note has a bid price of $995, the quoted bid price in the Wall Street Journal would be
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