Problem
Annual Interest. Paul has $18,000 that he wishes to invest in bonds. He can purchase Treasury bonds with a coupon rate of 7.7% or municipal bonds with a coupon rate of 5.9%. Paul lives in a state with no state income tax and has a marginal tax rate of 22%. Which investment WI" give Paul the higher annual earnings after taxes are considered? Paul's income from the Treasury bonds after taxes is SD.