The yield on a corporate bond is 10 and it is currently


The yield on a corporate bond is 10%, and it is currently selling at par. The marginal tax rate is 20%. A par value municipal bond with a coupon rate of 8.50% is available. Which security is a better buy?

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Finance Basics: The yield on a corporate bond is 10 and it is currently
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Now Priced at $10 (50% Discount)

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