How much would municipal bond have to pay to be equivalent


A corporate bond pays 8.5 percent interest. How much would a municipal bond have to pay to be equivalent to this on an aftertax basis if you are in the 35 percent tax bracket? 

Solution Preview :

Prepared by a verified Expert
Finance Basics: How much would municipal bond have to pay to be equivalent
Reference No:- TGS0676271

Now Priced at $5 (50% Discount)

Recommended (99%)

Rated (4.3/5)