A taxable bond has a yield of 9%, and a municipal bond has a yield of 6.5%. If you are in a 30% tax bracket, explain whi

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answerhappygod
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A taxable bond has a yield of 9%, and a municipal bond has a yield of 6.5%. If you are in a 30% tax bracket, explain whi

Post by answerhappygod »

A taxable bond has a yield of 9%, and a municipal bond has a
yield of 6.5%. If you are in a 30% tax bracket, explain which bond
you will prefer. At what tax rate would you be indifferent between
these two bonds?
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