Assume you are in the 36% federal tax bracket and your state income tax rate is 4%. You are trying to decide between two investments.
One investment is a $10,000 corporate bond paying 8%, the other is a $10,000 municipal bond paying 5%. Which do you choose and why (show your work)
One investment is a $10,000 corporate bond paying 8%, the other is a $10,000 municipal bond paying 5%. Which do you choose and why (show your work)