Question: 2. You are introduced for two bonds, one bond is corporate bond, which has a 16% return; the other bond is a tax-exempt bond, which

2. You are introduced for two bonds, one bond is corporate bond, which has a 16% return; the other bond is a tax-exempt bond, which has a 12% return. Which one of the two bonds would you purchase if your marginal tax rate is 11%?

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