Denise Tay is looking for a fixed-income investment. She is considering two bond issues: a. A Treasury
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Denise Tay is looking for a fixed-income investment. She is considering two bond issues:
a. A Treasury with a yield of 3%
b. An in-state municipal bond with a yield of 2% Denise is in the 35% federal tax bracket and the 9% state tax bracket. Which bond would provide Denise with a higher tax-adjusted yield?
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Treasury taxable equivalent yield Treasury yield1 State tax rate1 ...View the full answer
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Related Book For
Fundamentals Of Investing
ISBN: 9780135175217
14th Edition
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
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