Tax Exempt Bond Rates Federal Taxation Problem?

Federal Taxation Problem? - tax exempt bond rates

John thought of a holding in a fund for tax-exempt bonds of $ 100,000, when he discovered that these interests should be included in your tax return. The interest rate is 15%. their marginal cost of federal tax is 35% and the marginal rate of state income tax is 10%. John itemize deductions on your tax return. Alternatively, John can buy government bonds () double tax-exempt bonds, and received 4.9% of the shares is exempt from income tax on federal and state authorities. This would be the biggest investment after taxes? Help please ..