Bond investor is considering two 10 year maturity

jagguarpaw January 23, 2017 0 Comments

Question:  Bond investor is considering two 10 year maturity

A bond investor is considering two 10 year maturity bonds both rated A: the municipal bond is yielding 2.35% and the corporate bond is yielding 3.45%. At what marginal tax rate would the bond investor be indifferent between the two bonds?