Question: 4() You are trying to decide between a par value corporate bond carrying a coupon rate of 6.25% per year and a par value municipal

4() You are trying to decide between a par value corporate bond carrying a coupon rate of 6.25% per year and a par value municipal bond that pays an annual coupon rate of 4.75%. Assuming all other factors are the same and you are in the 28% tax bracket, which bond should you choose and why?

make the procedure you use for each problem obvious, by including any formula you use, and explain how you arrive at the answer.

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