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Donna is considering purchasing a bond. She is in the 30% tax bracket. Which one should she purchase if she is only concerned about YTM?

Donna is considering purchasing a bond. She is in the 30% tax bracket. Which one should she purchase if she is only concerned about YTM?

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Acme 10-year bond, paying 5% semi-annually, priced at $1,171.69.

State Street 10-year bond, paying 2% semi-annually, priced at $897.99.

California 10-year bond, paying 4% semi-annually, priced at $1,131.99.

Florida general obligation 10-year bond, paying 3% semi-annually, priced at $1,071.46.

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