6. Taxable or Tax-Free. Ashley Rivera of Milford, Nebraska, has a choice of two investments: a $1000
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6. Taxable or Tax-Free. Ashley Rivera of Milford, Nebraska, has a choice of two investments: a $1000 tax-free municipal bond that pays 4.3 percent interest or a $1000 taxable corporate bond that pays 6.3 percent interest. Both bonds will mature in fi ve years. If Ashley is in the 25 percent tax bracket, which bond should she choose? Use the information on page 130 or the Garman/Forgue website.
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