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true or false A taxpayer should invest in tax exempt bonds instead of taxable bonds if the...

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Question

Accounting

true or false

A taxpayer should invest in tax exempt bonds instead of taxablebonds if the interest on the exempt
bonds is greater than the interest on the taxable bonds multipliedby 1 minus the taxpayer's marginal
tax rate

Answer & Explanation Solved by verified expert
3.6 Ratings (491 Votes)
Taxable bonds are bonds interest earned on which is chargeable to tax at taxpayers marginal tax rate On the other hand tax exempt bonds are bonds interst earned on which is not chargeable to tax Which type of bond is better for any taxpayer depends on    See Answer
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