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shartman22
18.01.2021 •
Business
Assume that you are in the 25% marginal tax bracket and that you have $50,000 to invest. You have narrowed your investment choices down to municipal bonds yielding 7% or equally risky corporate bonds with a yield of 10%. Which one should you choose and why
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Ответ:
The corporate bond yield of 10% should be chosen
Explanation:
Based on the information given, we should note that the municipal bond will yield 7% and the corporate bind will yield an after tax of
= 10% × (1 - 25%)
= 10% × 75%
= 750%
= 7.50.
Therefore, we can see that the after tax yield of the corporate bond is higher and therefore should be chosen
Ответ:
answer:
i think it E but dont know
Explanation:
E