Question
An investor lives in a state with a 3% tax rate. Her federal income tax bracket is 35%. She wants to invest in one of
An investor lives in a state with a
3%
tax rate. Her federal income tax bracket is
35%.
She wants to invest in one of two bonds that are similar in terms of risk (and both bonds currently sell at par value). The first bond is fully taxable and offers a yield of
10.96%.
The second bond is exempt from both state and federal taxes and offers a yield of
6.90%.
In which bond should she invest?
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Generational Wealth Personal Financial Handbook
Authors: Sherique Dill
1st Edition
1985161222, 978-1985161221
