Question: A client in the 33% marginal tax bracket is comparing a municipal bond that offers a 5% yield to maturity and a similar-risk corporate bond

A client in the 33% marginal tax bracket is comparing a municipal bond that offers a 5% yield to maturity and a similar-risk corporate bond that offers a 7% yield. Which bond will give the client a higher return after taxes? A) Both provide the same return after taxes B) The corporate bond OC) The municipal bond D) Cannot tell with the given information

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