Adanya's marginal tax rate is 37% and she is trying to decide whether to invest in tax- exempt bonds which pay 5% interest or taxable bonds paying 7% interest. The bonds have equivalent risk. Which of the bonds would yield the highest amount of income after taxes?

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The Answer of Adanya's marginal tax rate is 37% and she is trying to decide whether to invest in tax- exempt bonds which pay 5% interest or taxable bonds paying 7% interest. The bonds have equivalent risk. Which of the bonds would yield the highest amount of income after taxes?

Adanya's Marginal Tax Rate Is 37% and She Is Trying