Sandra, a single taxpayer in the 37 percent marginal tax bracket, has $60,000 she can invest in
Question:
Sandra, a single taxpayer in the 37 percent marginal tax bracket, has $60,000 she can invest in either corporate bonds with a stated interest rate of 9 percent or general revenue bonds issued by her municipality with a stated interest rate of 6 percent. What do you recommend she do? Would your answer change if her marginal tax rate is only 22 percent?
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With a marginal tax rate of 37 percent her aftertax return on the corpora...View the full answer
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Related Book For 
Taxation For Decision Makers 2019
ISBN: 9781119497288
9th Edition
Authors: Shirley Dennis Escoffier, Karen A. Fortin
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