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Tim is considering whether to buy a corporate bond with a 7.5% yield or a tax- exempt muni with a 6.2% yield. If he is
Tim is considering whether to buy a corporate bond with a 7.5% yield or a tax- exempt muni with a 6.2% yield. If he is in the 24% tax bracket, which bond should he buy and why? O He should buy the corporate bond because its after-tax yield is greater than the muni yield. He should buy the corporate bond because it has a higher yield than the muni. O He should buy the muni bond so he can avoid paying taxes. He should be indifferent between the bonds because they are both good investments. O He should buy the muni bond because its yield is greater than the after-tax yield of the corporate bond
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