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An investor is considering whether to invest in a general obligation municipal bond or a...

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Finance

  1. An investor is considering whether to invest in a general obligation municipal bond or a Treasury bond. The annual interest rate on the municipal bond is 3% and that on the Treasury bond is 4%. If an investor has a marginal tax rate of 20%, his after tax interest on the municipal bond is _________, and his after tax interest on the Treasury bond is __________.

    3%, 3.2%

    3%, 4%

    2.4%, 4%

    3.2%, 3.8%

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