Question
There are two investments. Bond A is an AA rated corporate bond with a YTM of 6% per year. Bond B is an AA rated
There are two investments. Bond A is an AA rated corporate bond with a YTM of 6% per year. Bond B is an AA rated municipal bond with a YTM of 4.5% per year. My marginal tax rate is 20%. Which bond should I invest in?
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
13th Edition
1260772381, 978-1260772388
