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11, A corporate bond currently yields 8.00%. Municipal bonds with the same risk, maturity, and liquidity currently yield 5.5%. At what tax rate would investors

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11, A corporate bond currently yields 8.00%. Municipal bonds with the same risk, maturity, and liquidity currently yield 5.5%. At what tax rate would investors be indifferent between the two bonds? (Round your final answer to two decimal places.) Hint: Remember, you do not pay federal tax on municipal bond interest a. 28.75 b. 35.00% C. d. 29.69% 30.94%

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