Business
Business, 06.03.2020 07:34, 194210lhs

A TP invests $300,000 in a city of Providence (municipal) bonds that pays 7% interest. Alternatively, he could have invested the $300,000 in a bond recently issued by Ocean State Corporation, Inc (corporate bond) that pays 11% interest with similar risk as the city of Providence bond. Assume that the TP's marginal tax rate is 35%.

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A TP invests $300,000 in a city of Providence (municipal) bonds that pays 7% interest. Alternatively...

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