Paul has $10,000 that he wishes to invest in bonds. He can purchase Treasury bonds with a
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Paul has $10,000 that he wishes to invest in bonds. He can purchase Treasury bonds with a coupon rate of 7% or municipal bonds with a coupon rate of 5.5%. Paul lives in a state with no state income tax and has a marginal tax rate of 22%. Which investment will give Paul the higher annual interest after taxes are considered?
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Treasury bonds are exempt from state and local taxes but subject to federal ...View the full answer
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