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Why are high-tax-bracket investors more inclined to invest in municipal bonds than low-bracket investors?
Step 1
Municipal bonds are debt securities issued by states, municipalities, or other governmental entities to finance public projects. The interest earned on these bonds is often exempt from federal income tax and, in some cases, state and local taxes. Show more…
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Why are high-tax-bracket investors more inclined to invest in municipal bonds than are low-bracket investors?
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