Suppose you are in the 30% federal tax bracket and pay an additional 6% in Indiana state taxes. Assume you are an Indiana resident. Which of the following bonds would offer you the best after tax return? FORMAT TO 4 DECIMAL
A. Cannot calculate without further information
B. An Indiana Muni paying 5.25% for 15 years
C. A Michigan Muni paying 5.15% for 15 years
D. A U.S. Treasury paying 6.45% for 15 years
E. A Home Depot bond paying 7.35% for 15 years