1. A municipal bond, which is not taxed, offers a 5.4% annual rate of return. A corporate bond, which is taxed, offers a 9% annual rate of return. If these bonds have the same after-tax return for an investor, what is the investor's tax rate?
33.3% 40% 60% 4%
2. Which would you rather invest in:
A savings account paying 6% compounded annually
A savings account paying 6% compounded daily?
Why 'a' or 'b' and show your math?