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A 10-year maturity zero coupon bond will have lower price volatility than a 10-year bond with a 10 percent coupon. True False 2. An investor

  1. A 10-year maturity zero coupon bond will have lower price volatility than a 10-year bond with a 10 percent coupon.
  1. True
  2. False

2. An investor is trying to decide between a muni paying 5.75 percent or an equivalent taxable corporate paying 8.25 percent. What is the minimum marginal tax rate the investor must have to consider buying the municipal bond?

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