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Author: foobar73 Big red star, 1000 posts Feste Award Nominee! Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35351  
Subject: Re: This is probably a dumb question Date: 5/2/2002 1:22 AM
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Why wouldn't tax-exempt bonds be appropriate for all investors?

Tax-exempt bonds typically have lower yields than an equivalent taxable bond. If you are in a low- to middle-tax bracket, you are likely better off just taking the higher yield and paying the tax, since the tax will likely be smaller than the yield you lose by going to a tax-exempt bond. Of course, this is a generality, and you may find exceptions out there, but they will be rare.
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