Question - Mr. and Mrs. Angello are in the 35% tax bracket. They are trying to decide whether they should purchase a taxable bond or a municipal bond that pays 5.9% They are subject to the NIIT, but they are not subject to any state income tax.
The minimum interest rate (break-even point) at which they should consider buying the taxable bond (rounded to 2 decimal places) is
9.65%
8.12%
10.01%
3.67%