An investor is considering purchasing a bond. He has settled on either a 6% municipal bond offered by the state in which he lives or an 8% corporate bond offered by a company with headquarters in his state. He would like you to help him decide which bond will get him the greatest return for his investment. Which of the following items of information must you obtain before you can make a specific recommendation?
A) What other securities he owns.
B) His net worth.
C) His tax bracket.
D) How long he has been a resident of his state.
Answer: C) His tax bracket.