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12-04-2020
Business

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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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mefwamage69 mefwamage69

12-04-2020

The coupons paid by municipal bonds are exempt from federal income tax and from state tax in many states. Therefore, the higher the tax bracket that the investor is in, the more valuable the tax-exempt feature to the investor.

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