Which is better: discount or high coupon rate? Type of bond Discount High rate Municipal: not state Tax-exempt Municipal: state Tax-exempt Treasury security Corporate or other Price you paid (% of face value)   %   % Face value $   $   Coupon rate   %   % Months until maturity         Your coupon income is Invested elsewhere at a rate of % Spent Months until you sell bonds     Market rate when you sell   % Your federal tax rate   % Your state tax rate   %