[Solved] You Are Trying to Decide Whether It Is Worth Investing

Question 188
Multiple Choice
Question 188

You are trying to decide whether it is worth investing in a municipal bond or a corporate bond. You have identified a corporate bond you like with an 8% yield. If you are in the 30% marginal tax bracket, what comparable interest rate on a municipal bond would you accept?

A) 2.4% or lower.
B) 2.4% or higher.
C) 5.6% or lower.
D) 5.6% or higher.

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