Question: Walter 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

Walter 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?

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