Sharon lives in virginia and expects the taxes on her bond income to be 5.75% for the state of virginia and 28% for the federal government. she can
invest in fixed-yield corporate bonds with a 6.50% yield or fixed-yield municipal bonds with a 5.25% yield. sharon calculates that she will earn
approximately 0.876% more after taxes by investing in corporate bonds. what did sharon miscalculate?
select the best answer from the choices provided.
oa.
the municipal bond income is not taxed by the state of virginia
ob.
the municipal bond income is not taxed by the federal government
oc.
there is a difference in inflation risks between the two bonds.
od.
there is a difference in capital gains income between the two bonds.
reset
c. next