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- Calculate Tax Benefit of Municipal Bonds A taxable bond has a yield of 8%, and a municipal bond has a yield of 6%. If

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- Calculate Tax Benefit of Municipal Bonds A taxable bond has a yield of 8%, and a municipal bond has a yield of 6%. If you are in a 30% tax bracket, which bond do you prefer? (5\%) At what tax rate would you be indifferent between the two bonds? (5%) - Read the article 'Risk Creeps Into Municipal Bond Market, Yet Prices Stay High' and discuss why higher risk did not result in lower price? (20\%)

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