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What is the yield on a $1,000,000 municipal bond with a coupon rate of 8.5%, paying interest annually, versus the yield of a $1,000,000 corporate
What is the yield on a $1,000,000 municipal bond with a coupon rate of 8.5%, paying interest annually, versus the yield of a $1,000,000 corporate bond with a .coupon rate of 15% paying interest annually? Assume that you are in the 25% tax bracket : ! Municipal bond coupon payments equal $80,000 per year, while after-tax yield of corporate bond is only 7.5% .A Municipal bond coupon payments equal $85,000 per year, while after-tax yield of corporate bond is only 7.5% .B Municipal bond coupon payments equal $85,000 per year, while after-tax yield of corporate bond is only 11.25% .C Municipal bond coupon payments equal $85,000 per year, while after-tax yield of corporate bond is only 8.5% .D
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