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You are deciding between investing in a municipal bond with an annual return of 5%...

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Accounting

You are deciding between investing in a municipal bond with an annual return of 5% or a regular bond with a 7.25% return, you pay a tax rate of 30%, which bond is a better investment for you, if both are equally risky?

Regular bond

Both are the same

There is not enough information to answer this question

Municiple bond

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