Emily is in the 35% marginal tax bracket. She can purchase a York County school bond yielding 3. 5% interest, which is not subject to a 5 % state tax. But she is interested in earning a higher return for comparable risk. explain your work Which of the following is correct: 

If she buys a corporate bond that pays 6% interest, her after-tax rate of return will be less than if she had purchased the York County school bond. 

If she buys a U.S. government bond paying 5%, her after-tax rate of return will be less than if she had purchased the York County school bond. 

If she buys a common stock paying a 4 % dividend, after-tax rate of return will be higher than if she had purchased the York County school bond. 

All of these are correct. 

None of these is correct

Answer rating: 100% (QA)

If she buys a US government bond paying 5 her aftertax rate of re... View the full answer