Dana intends to invest $66,000 in either a treasury bond or acorporate bond. The Treasury Bond yields 5 percent before tax andthe corporate bond yields 6 percent before tax.
A) Assuming dana's federal marginal rate is 24 percent and hermarginal state rate is 5 percent, which of the two options shouldshe choose? Assume the Dana itemizes deductions
Corporate bonds
Treasury Bonds
A2) How much interest after-tax would Dana earn by investing inthe corporate bond?
B) if she were to move to another state were her marginal staterate would be 10 percent, which of the two options should shechoose? Assume that Dana itemizes deductions
Corporate Bonds
Treasury Bond
B2) how much interest after-tax would Dana earn by investing inthe corporate bond as per requirement B)?
