You Are Considering the Purchase of One of Two Different

question 77

Multiple Choice

You are considering the purchase of one of two different investments.Investment A is tax exempt and pays 6%.Investment B is taxable and pays 8.33%.You live in a state that imposes no income taxes and are in a 28% federal tax bracket and want to earn the highest after tax return possible.Which of the following is true? (round to two decimal places)

• A)Investment A is preferred.
• B)Investment B is preferred.
• C)Investments A and B have identical after tax yields.
• D)Investments A and B have identical APYs.
• E)Not enough information has been provided.

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