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    Corporate Bond vs. Tax-Free Bond

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    I need help because I don't understand how the teacher arrived at the answer for this problem. With all things the same and the investor is in the 30% tax bracket which bond should they purchase?

    Answer - Corporate bond 6.3%

    © BrainMass Inc. brainmass.com June 3, 2020, 6:36 pm ad1c9bdddf
    https://brainmass.com/business/bond-valuation/corporate-bond-vs-tax-free-bond-67325

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    This explains the steps to compare the returns from Corporate bond vs. tax-free bond

    $2.19

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