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How do I decide between a tax-free or a regular bond?
Answered By Editor
Deciding to choose a tax-free bond and a
regular bond is very simple. All you have to
do is follow these simple steps in order to
determine which will be more beneficial for you:
- Convert the regular bond's rate that
will be equal to the after tax rate.
- Compare it with the tax-free bond's
interest rate.
- The larger interest rate wins.
keywords: Bond | Bonds | Financing | Stocks | Tax Free
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