Lloyd Said:

Why are high yield corporate stocks taxable?

We Answered:

If you mean high yield corporate bonds, because the tax code says they're taxable. As an incentive to get people to invest in their communities (and reduce gov't borrowing costs), the tax code makes interest on many types of government bonds (such as State, County or Municipal bonds) free from tax.

Gains on corporate stocks aren't taxable until you sell them. Again, that's because the tax code requires it.

Jessie Said:

Could you recommend me a good high yield corporate bond ETF?

We Answered:

If you buy an ETF that has a good yield right now, chances are that it is overpriced, and the yield will drop soon after you buy it. It is hard for a fund to be consistently on top from year to year.

If you are not willing to consult a professional financial adviser, then I suggest that you just close your eyes and pick one.

Tammy Said:

Do you know a good website/software for checking prcing on High Yield and Emerging Market Bonds?

We Answered:

There are links below for checking the prices of corporate bonds, including high yield bonds. It's yougher to find prices on emerging market bonds unless you have access to a Bloomberg terminal or a similar service. Your best bet is to call some brokers and ask for some quotes.

Sarah Said:

Do municipal bonds or corporate bonds offer a higher before-tax yield at a given point in time? why?

We Answered:

Corporate bonds give higher before tax yield than municipal bonds that are tax exempt. Municipalities are given tax advantages so that they can issue debt at lower interest rates.

For example, if you got 5% on a corporate bond and paid 30% in tax, you would only be getting 3.5% after tax. With a municipal bond you could get maybe 4%, which would be 4% after tax, and a better deal. It depends on you tax bracket. If you only had to pay 10% in taxes and not 30%, the corporate would be a better deal.

Phyllis Said:

what advantages does a High Yield Corporate Stock?

We Answered:

I assume you mean high yield bonds. Higher yield is the advantage. But higher risk goes along with it. This kind of bond is more commonly called "junk bonds."