If an investor is in the 24 percent federal income tax bracket, which bond is to be preferred?
a. Single A, ten-year corporate bond yielding 6.5%
b. Single A, ten-year municipal bond yielding 3.1%

Question

If an investor is in the 24 percent federal income tax bracket, which bond is to be preferred? 
      a. Single A, ten-year corporate bond yielding 6.5% 
      b. Single A, ten-year municipal bond yielding 3.1%

Quizplus · Accepted Answer

The Answer of If an investor is in the 24 percent federal income tax bracket, which bond is to be preferred? 
      a. Single A, ten-year corporate bond yielding 6.5% 
      b. Single A, ten-year municipal bond yielding 3.1%

If an Investor Is in the 24 Percent Federal Income