Question
A five-year AAA-rated municipal bond yields 1.5% when a five-year government bond yields 2.0%. You have two investor clients, one in the 20% tax bracket
A five-year AAA-rated municipal bond yields 1.5% when a five-year government bond yields 2.0%. You have two investor clients, one in the 20% tax bracket and one in a 45% tax bracket. What would you advise them about buying this particular municipal bond compared to the U.S. government bond?
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Personal Finance Turning Money Into Wealth
Authors: Arthur Keown
8th Edition
0134730364, 978-0134730363
