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1 . As a recent hire with a Financial Firm , you have been asked by one of your customers , who is in 309
1 . As a recent hire with a Financial Firm , you have been asked by one of your customers , who is in 309 6 marginal tax bracket to make specific recommendations about the following two investment choices that have the same amount of risk A 4 . 5 % Tax Free Municipal Bond A 6.59% Corporate Bond Your advice to the Customer is to Answer a Buy Municipal Bond because it is Tax Free b . Buy Stock rather than Bands because Stocks perform better than Bonds C . Buy Corp Bond because its after Tax yield is higher than tax free Bond I Buy both the Bonds as both are offering good yields
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