You Are Considering the Purchase of One of Two Different

question 54

Multiple Choice

You are considering the purchase of one of two different bonds,a muni,which currently yields 6%,and a corporate,which currently yields 10%.If you are trying to maximize your return and you are in a 38% tax bracket,which of the following is true?

• A)The muni bond has a better yield for you.
• B)The corporate bond has a better yield for you.
• C)The bonds have identical yields for you.
• D)There is not enough information to determine which is a better yield for you.