Question: Keisha is in the 3 5 % bracket and is comparing a 4 % corporate bond to a 3 % municipal bond. Which should Keisha

Keisha is in the 35% bracket and is comparing a 4% corporate bond to a 3% municipal bond. Which should Keisha buy and why?
a. She should buy the municipal bond because it will lower her tax bracket.
b. She should buy the municipal bond because it pays an equivalent yield on a taxable bond of 4.62% compared to the corporate bond of 4%.
c. She should buy the corporate bond because it has a higher interest rate.
d. She should buy the corporate bond because it has an after-tax return of 6.15%.
Keisha is in the 35% bracket and is comparing a 4%

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