Question
(1) A corporate bond has a yield to maturity of 8%. A municipal bond with similar risk has a yield to maturity of 6%. Assuming
(1) A corporate bond has a yield to maturity of 8%. A municipal bond with similar risk has a yield to maturity of 6%. Assuming your marginal tax rate is 30%, which one do you prefer?
(2) Suppose the rate on a corporate bond is 9% and the rate on a municipal bond is 6.75%. Which should you choose?
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
