Posted by Tiffany on .
Short Term municipal bonds currently offer yields of 4%, while taxable bonds pay 5%. Which gives you the higher after tax yield if your tax bracket is.
a. taxable pays more after taxes (5%)
b. taxable pays more after taxes (4.5%)
c. they pay the same after taxes (4%)
d. municipal pays more after taxes in the 30% bracket
Thanks, I came up with the same answers except for c. I came up with 4% for the taxable and 5% for the municipal, can you show me the equation so I can see what I am doing wrong.