A married couple from California is in the 31% Federal tax bracket and the 8% California tax bracket. They are considering a 5¼% Hawaii municipal bond (Federal tax-free), a 5% California bond (double tax-free) or a 7¾% corporate bond (fully-taxable). Which bond offers the highest after-tax interest rate?

Answer rating: 100% (QA)

To determine the aftertax interest rate for each bond option we need to calculate the net aftertax y... View the full answer