You are looking for an investment. Your broker informs you that you can purchase a corporate...

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You are looking for an investment. Your broker informs you that you can purchase a corporate bond issued by ABC Corporation which has a yield of 8.15%. He also informs you that Hudson county will be issuing municipal bonds that have a yield of 6.25%. You are presently in the 35% tax bracket. After comparing both bonds which bond would you purchase. Please show your work in comparing the bonds. Answer-After tax yield of corporate bonds Answer - Which bonds do you buy? You are looking for an investment. Your broker informs you that you can purchase a corporate bond issued by ABC Corporation which has a yield of 8.15%. He also informs you that Hudson county will be issuing municipal bonds that have a yield of 6.25%. You are presently in the 35% tax bracket. After comparing both bonds which bond would you purchase. Please show your work in comparing the bonds. Answer-After tax yield of corporate bonds Answer - Which bonds do you buy?

Answer rating: 100% (QA)

Yield from corporate bond 815 Yield from Muncipal bond 625 Tax rate 35 Here muncipal ... View the full answer