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2. Ms. Drake is deciding between investing $50,000 in two different municipal bonds, both of which have the same risk. The fi

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Texas bond offers Better return to Ms. Drake by $ 6.00 ( $ 1669- $1675 ) for every $50,000 invested . Pre tax income In case of Texas bond is $1750.00 and after deducting tax @4.63% its post tax interest income is $1669 which is higher than that of Colorado bond . calculation are shown in picture attached alongwith.

→ Ms. Drake resident of wolorado → federal Tax rate 35% Any Income from Texas toxable at 4.63% and benefit on that income giv

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