Question: Question 6 8 points Save Answer Denard has purchased two bonds at par value. One is a $1,000 Municipal Bond with a coupon rate of

Question 6 8 points Save Answer Denard has purchased two bonds

Question 6 8 points Save Answer Denard has purchased two bonds at par value. One is a $1,000 Municipal Bond with a coupon rate of 4% and the other is a $1,000 Corporate Bond with a coupon rate of 5%. He is in the 35% tax bracket. What are the after tax returns on the two bonds? A. Municipal Bond is 2.6% and The Corporate Bond is 3.25% B. Municipal Bond is 4% and The Corporate Bond is 5% O C. Municipal Bond is 4% and The Corporate Bond is 3.25% D. Municipal Bond is 2.6% and The Corporate Bond is 5%

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