The Caldwell family is in the 28% federal income tax bracket. They are discussing the relative merits

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The Caldwell family is in the 28% federal income tax bracket. They are discussing the relative merits of using some of the household savings to buy a bond for a city water plant project that will pay 5.5% tax-free interest versus the alternative of buying a bond offered by the local electric power company that will pay 8% interest that is taxable. Which investment will provide the higher after-tax return for the Caldwells?
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Public Finance

ISBN: 978-1111526986

2nd edition

Authors: John E. Anderson

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