Question: A client in the 32% marginal tax bracket is comparing a municipal bond that offers a 6% yield to maturity and a similar-risk corporate bond

A client in the 32% marginal tax bracket is comparing a municipal bond that offers a 6% yield to maturity and a similar-risk corporate bond that offers a 9% yield. Which bond will give the client a higher return after taxes? Question 26 options: A) The corporate bond B) Cannot tell with the given information C) The municipal bond D) Both provide the same return after taxes

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