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Question
Sonya has a marginal tax rate of 36 percent. A corporate bond is yielding 7.4 percent and a municipal bond is yielding 3.6 percent. Sonya should invest in the _____ bond because the critical marginal tax rate is _____ percent.A. corporate; 17
B. corporate; 34
C. corporate; 51
D. municipal; 43
E. municipal; 51
Answer
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