Post a New Question


posted by .

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?

  • Finance -

    Interest on U.S. Treasury bonds is taxed at 28%. Interest on municipal bonds is not taxed.

    Do the math to figure out which is the better buy.

Answer This Question

First Name:
School Subject:

Related Questions

More Related Questions

Post a New Question