David has the option to invest in one of the following  Town of Elmdale bond that pays 6% interest annually Town of Schitt's Creek bond that pays 6.5% interest annually Prada corporate bond that pays 7% interest annually Gucci corporate bond that pays 6% interest annually   David anticipates that his marginal rate will be 10%.  Which investment should he choose from tax perspective

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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David has the option to invest in one of the following 

  • Town of Elmdale bond that pays 6% interest annually
  • Town of Schitt's Creek bond that pays 6.5% interest annually
  • Prada corporate bond that pays 7% interest annually
  • Gucci corporate bond that pays 6% interest annually

  David anticipates that his marginal rate will be 10%.  Which investment should he choose from tax perspective?

a.Group of answer choices
b.Prada bond
c.Elmdale bond
d.Schitt's Creek bond
e. Gucci bond
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