Both bonds have a 1000 par value the company is currently


The corporate treasurer of Inc, Inc. is considering the purchase of either a municipal obligation with a 6.6% coupon or an offering carrying a 10% coupon. Both bonds have a $1,000 par value. The company is currently in the 34% marginal tax bracket. Which security should the treasurer recommend?

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Finance Basics: Both bonds have a 1000 par value the company is currently
Reference No:- TGS0628108

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