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Order these investment alternatives exclusively in terms of before tax yield for an investor in a 35% marginal tax rate? (FROM HIGHER TO LOWER) 26

Order these investment alternatives exclusively in terms of before tax yield for an investor in a 35% marginal tax rate? (FROM HIGHER TO LOWER)

26 weeks T-Bills @97% of par value (par value = $10,000)

60 days CD with 7% single payment yield

a 10% coupon rate Corporate Bond

a 7.5% coupon rate municipal Bond


  1. CD (BEST), MUNICIPAL BOND, TBILL, CORPORATE BOND (WORST)

  2. TBILL (BEST), MUNICIPAL BOND, CORPORATE BOND, CD (WORST)

  3. CORPORATE BOND (BEST), MUNICIPAL BOND, TBILL, CD (WORST)

  4. MUNICIPAL BOND (BEST), CORPORATE BOND, CD, TBILL (WORST)

  5. MUNICIPAL BOND (BEST), CORPORATE BOND, CD, TBILL(WORST)

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