Backing small business investment – further extending the ...
He will have to pay income taxes on the $6,000 he receives to invest in municipal bonds and he will have only $4,320 ($6,000 - $1,680 tax) remaining to invest. His net after-tax cost of this investment is $10,320 ($6,000 + $4,320). He will then earn annual tax-exempt interest income on this investment of … ................
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