A client in the 26 percent marginal tax bracket is comparing a municipal bond that offers a 6.4 percent yield to maturity and a similar-risk corporate bond that offers a 9.10 percent yield.
Determine the equivalent taxable yield. (Round your answer to 2 decimal places.)
Equivalent taxable yield %
Which bond will give the client more profit after taxes?
_____ Corporate bond
_____ Municipal bond
1 answer