How does the after-tax yield on a $1,000,000 municipal bond with a coupon rate of 8% paying

Question:

How does the after-tax yield on a $1,000,000 municipal bond with a rate of 8% paying interest annually, compare with that of a $1,000,000 corporate bond with a rate of 10% paying interest annually? Assume that you are in the 25% tax bracket.

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...