Question
A municipal bond has a yield of 6% while a corporate bond yields 7 percent. If you are in the 30 percent tax bracket, which
A municipal bond has a yield of 6% while a corporate bond yields 7 percent. If you are in the 30 percent tax bracket, which bond would you prefer to buy and why?At what tax rate would you be indifferent between these two bond yields?
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Valuation Measuring and managing the values of companies
Authors: Mckinsey, Tim Koller, Marc Goedhart, David Wessel
5th edition
978-0470424650, 9780470889930, 470424656, 470889934, 978-047042470
