Bhad Bhabie plans to invest $100,000 in either a corporate bond paying 3.5% or a tax-exempt bond with a 2.5% interest rate. The bonds have an equivalent level of risk. Bhad Bhabie has a 30% marginal tax rate and wants to maximize her after-tax earnings. 

What bonds should Bhad Bhabie invest in assuming that she wants to maximize her after-tax return?

Answer rating: 100% (QA)

To determine the best investment option for Bhad Bhabie in terms of maximizing her aftertax return w... View the full answer