For whom would a municipal bond be a better investment? None of these, the net yield...

Question

Question

For whom would a municipal bond be a better investment?

None of these,

the net yield of a municipal bond are equal for all investors.

a young investor with a low income any investor with a low marginal tax rate.

an older investor with a high income

Answer 1

Answer #1

Answer:

an older investor with a high income

municipal bonds give tax-free interest payments. So those who are in high tax bracket, can generate income without increasing tax burden.

Answer 2

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