Question: LO 4 - 6 1 9 . Mr . Fuentes has $ 1 5 , 0 0 0 to invest. He is undecided about putting

LO 4-619. Mr. Fuentes has $15,000 to invest. He is undecided about putting the money into tax-exempt municipal bonds paying 3.5 percent annual interest or corporate bonds paying 4.75 percent annual interest. The two investments have the same risk.
a. Which investment should Mr. Fuentes make if his marginal tax rate is 32 percent?
b. Would your conclusion change if Mr. Fuentes's marginal tax rate is only 12 percent?
LO 4-619. Mr. Fuentes has $15,000 to invest. He is undecided

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