Lydia Past $30,000 to invest and is considering a corporate bond that pays 7% annual...
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Accounting
Lydia Past $30,000 to invest and is considering a corporate bond that pays 7% annual interest or a non dividend paying stock that is accepted to appreciate by 7% each year. Given that both investments are a similar risk, and the long-term capital gain tax rate is lower than the ordinary income tax rate, which option should Lydia choose? Why?
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