Question: Go to www . wsj . com / us and click on Rates . Compare the rate of a 1 0 - year Treasury bond

Go to www

.

wsj

.

com

/

us and click on

Rates

.

Compare the rate of a

10 -

year Treasury bond to a

10 -

year

Municipal bond. Which type of bond would offer you a higher annual yield based on your tax bracket, given that the municipal bond is not subject to federal income taxes?

Determine the premium contained in the yield of a

10 -

year corporate A

-

rated bond as compared with the

10 -

year Treasury bonds.

Compare that premium to the premium that existed one month ago. Did the premium increase or decrease? Explain the change. Is the change attributed to economic conditions?

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