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Business, 22.01.2021 20:30 mvtthewisdead

Suppose that your marginal federal income tax rate is 20%, your marginal state income tax rate is 5%, and the yield on thirty-year U. S. Treasury bonds is 2.5%. You would be indifferent between buying a thirty-year Treasury bond and buying a thirty-year municipal bond issued within your state (ignoring differences in liquidity, risk, and costs of information) if the municipal bond has a yield of Group of answer choices 2.0%. 1.875%. 0%. 3.0%.

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