In this tutorial/lesson I teach you how to compare taxable bonds such as corporate bonds with nontaxable or tax exempt bonds such as municipal bonds. Investors should always invest in the bond that provides the highest after tax return whether it is a corporate bond vs a municipal bond, corporate bond vs tax exempt bond, taxable bond vs tax free bond, taxable bond vs non taxable bond etc.. I show you how to do this by teaching you the after tax rate of return formula, the equivalent taxable return formula, and the cutoff tax bracket formula.