February 27, 2017

Homework Help: Finance

Posted by Brent on Saturday, June 28, 2014 at 6:09pm.

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?

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