Ben and John are considering some bonds for investing. They want as much money after tax as possible. Their marginal rate is 24%. Their investment options include: City of Pasedena bonds with an...

Ben and John are considering some bonds for investing.  They want as much money after tax as possible.   Their marginal rate is 24%.  Their investment options include:

• 
  
  
  
  • City of Pasedena bonds with an interest rate of 6%
  
  
  • ABC Corporate Stock with an interest rate of 8.5%
  
  
  • State of California with an interest rate of 5.75%
  
  
  • Apple Corporate stock with an interest rate of 8%
  
  
  • City of Los Angeles with an interest rate of 6.25%
  
  
  • Disney Corporate stock with an interest rate of 7.5%
  
  
  
  

What is the after-tax interest rate for each of the 6 bonds they are considering?

Which bond should they choose if they want the highest after tax return?