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A 5-year corporate bond yields 9 percent.A 5-year municipal bond of equal risk yields 6.5 percent.Assume that the state tax rate is zero.At what federal

A 5-year corporate bond yields 9 percent.A 5-year municipal bond of equal risk yields 6.5 percent.Assume that the state tax rate is zero.At what federal tax rate are you indifferent between the two bonds? [Set your calculator to at least four decimal places]

27.78%

33.33%

41.22%

54.33%

72.22%

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