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You have 2 bonds of equal risk that you are looking at: Tax Free Bond Yield is 4.75% Taxable Bond Yield is 6.15% Assuming you
- You have 2 bonds of equal risk that you are looking at:
Tax Free Bond Yield is 4.75%
Taxable Bond Yield is 6.15%
Assuming you are in the 28% tax bracket, Calculate the following.
- Tax Equivalent Yield or Equivalent Taxable Yield on the Tax Free Bond
- After Tax Yield on the Taxable Bond
- Which bond would you choose and why?
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