You have the chance to buy either one of two bonds.The first is a tax-free municipal with a coupon yield of 6.5%.The second is a corporate bond with a yield of 8.5%.Both bonds are rated AA.Your tax rate is 28%.Which would you choose?

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The Answer of You have the chance to buy either one of two bonds.The first is a tax-free municipal with a coupon yield of 6.5%.The second is a corporate bond with a yield of 8.5%.Both bonds are rated AA.Your tax rate is 28%.Which would you choose?

You Have the Chance to Buy Either One of Two