Business, 13.09.2019 01:30, killinit143
Jack has $1,000 to invest. he has a choice between municipal bonds with an interest rate of 4% or corporate bonds with an interest rate of 6%. jack has a marginal tax rate of 25%. given this information, jack should invest in the bonds. the after-tax rate of return on the municipal bonds is % and the after tax rate of return on the corporate bonds is %. the difference in the rates of return is known as taxes.
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