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Beth, who lives in NY City, is in the 24% federal tax bracket and 6% state income tax bracket. Which of the following bonds that
Beth, who lives in NY City, is in the 24% federal tax bracket and 6% state income tax bracket. Which of the following bonds that she is considering purchasing has the highest after-tax yield?
1) Treasury bond paying 5.4%
2) Corporate bond paying 5.5%
3) Florida Municipal bond paying 4.2%
A. 1 only.
B. 2 only.
C. 3 only.
D. 1 and 2 are the same and the highest.
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