Duration of Bonds is not needed to answer question. You are a Financial Advisor and you have been asked by a client if they should buy a corporate bond or a Muni Bond. Speaking only to the aspect ofwhat has the best yield advise your client by using the Tax Equivalent Yield calculation given the following:
Corporate Bond Option 1:
AAA JOHNSON & JOHNSON 5.550 08/15/2017
AAA Corporate, Investment Grade, Secondary Fixed Rate Bid/Ask 101.895/101.641
Muni Bond Option 2:
AA1 AA1 FORT LAUDERDALE FLA WTR & SWR 5.000 09/01/2032 09/01/2019
AA+ Municipal, Investment Grade, Secondary Fixed Rate Bid/Ask 109.830/108.878