A highly rated municipal bond has a coupon interest rate of 3 5 A similar (i e , same risk, same maturity, etc ) corporate bond has a coupon interest rate of 4 67 At what marginal tax rate would an investor find these two bonds to be equally attractive ...

The marginal rate of tax can be calculated as follow ...

A highly-rated municipal bond has a coupon interest rate of 3.5%. A similar (i.e., same risk, same

Question:

A highly-rated municipal bond has a interest rate of 3.5%. A similar (i.e., same risk, same maturity, etc.) corporate bond has a interest rate of 4.67%. At what marginal tax rate would an investor find these two bonds to be equally attractive?
Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...