Ronald, who is in the 22% tax bracket, has come to you for advice on a potential

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Ronald, who is in the 22% tax bracket, has come to you for advice on a potential investment. He has choice between investing in a tax exempt bond that pays 5% interest and a taxable bond that pays 7% Both bonds have the same level of risk. They are rated AA. What advice would you give? Be sure to consider the tax equivalent yield, or breakeven rate of return for a taxable investment.