PFIN 3rd Edition by Lawrence Gitman,Michael Joehnk,Randall Billingsley

تمرين 3

An investor in the 28 percent tax bracket is trying to decide which of two bonds to select: one is a 5.5 percent U.S. Treasury bond selling at par; the other is a municipal bond with a 4.25 percent coupon, which is also selling at par. Which of these two bonds should the investor select? Why?