You are in the 28 percent federal income tax bracket. A corporate bond offers you 6.8 percent

Question:

You are in the 28 percent federal income tax bracket. A corporate bond offers you 6.8 percent while a tax-exempt bond with the same credit rating and term to offers 4.1 percent. On the basis of taxation, which bond should be preferred? Explain.

Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...