Betty Forrester is 55 years old and wants to diversify her investment portfolio. She must decide if she should invest in
Posted: Sun May 29, 2022 6:27 pm
Betty Forrester is 55 years old and wants to diversify her
investment portfolio. She must decide if she should invest in tax
free municipal bonds or corporate bonds. The tax free bonds are
highly rated and pay 5.25%. The corporate bonds are more
speculative and pay 7.5%.
If Betty is in the 33% tax bracket, what is the taxable
equivalent yield on the municipal bond?
investment portfolio. She must decide if she should invest in tax
free municipal bonds or corporate bonds. The tax free bonds are
highly rated and pay 5.25%. The corporate bonds are more
speculative and pay 7.5%.
If Betty is in the 33% tax bracket, what is the taxable
equivalent yield on the municipal bond?