You need to choose between investing in a one-year municipal bond with a 3.75 percent yield and a one-year corporate bon
Posted: Wed Mar 09, 2022 8:49 am
You need to choose between investing in a one-year municipal
bond with a 3.75 percent yield and a one-year corporate bond with a
6 percent yield. If your marginal federal income tax rate is 35
percent and no other differences exist between these two
securities, which would you invest in?
bond with a 3.75 percent yield and a one-year corporate bond with a
6 percent yield. If your marginal federal income tax rate is 35
percent and no other differences exist between these two
securities, which would you invest in?