Question: URGENT! In 20 mins please! Please no need to solve and dont show the working, please just tell quickly if answer is A, B, C
URGENT! In 20 mins please! Please no need to solve and dont show the working, please just tell quickly if answer is A, B, C or D ASAP! JUST ANSWER THE OPTION! Thank you in advance!
You are trying to decide whether to invest in a municipal bond (tax-free) or a corporate bond. The municipal bond yield is 5% and the corporate bond yields return of 8%. Both bonds have similar risk. You are in a 32% tax bracket. Which of the following is correct?
A. 5% > 8%* 32%. So you choose the municipal bond.
B. 5% < 8%/32%. So you choose the corporate bond.
C. 5% < 8%*(1-32%). So you choose the corporate bond.
D. 5% < 8%*(1-32%). So you choose the municipal bond.
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