Mr. G has $ 15,000 to invest. He is undecided about putting the money into...
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Accounting
Mr. G has $ 15,000 to invest. He is undecided about putting the money into tax-exempt municipal bonds paying 3.5 percent annual interest or corporate bonds paying 4.75 percent annual interest. The two investments have the same risk.
Which investment should Mr. G make if his marginal tax rate is 32 percent?
Would your conclusion change if Mr. Gs marginal tax rate is only 12 percent?
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