In order to compare the yields on municipal and corporate bonds the investor must restate the yield of either the taxable corporate bond to an after tax basis or the municipal bond to a pretax equivalent because:

Question

Quizplus · Accepted Answer

Municipal bonds are typically tax free, so investors must compare rates on an equal basis by restating the yield of either the taxable corporate bond to an after tax basis or the municipal bond to a pretax equivalent.

In Order to Compare the Yields on Municipal and Corporate