Sara Nixon is looking for a fixed-income investment. She is considering two bond issues: a. A Treasury
Question:
Sara Nixon is looking for a fixed-income investment. She is considering two bond issues:
a. A Treasury with a yield of 5%
b. An in-state municipal bond with a yield of 4% Sara is in the 33% federal tax bracket and the 8% state tax bracket. Which bond would provide Sara with a higher tax-adjusted yield?
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a Treasury taxable equivalent yield Treasury yield1 State tax rate1 FTR 0051 008 67 00...View the full answer
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Related Book For
Fundamentals Of Investing
ISBN: 9780134083308
13th Edition
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
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