A corporate treasurer is trying to decide which of two securities to purchase: A municipal CD pay 4.5% interest rate and a bank CD pay 6.25% interest rate. The issues municipality of the municipal CD is in the same state as the company. Suppose the federal tax rate is 25% and the state tax rate is 5%. Which security should the treasurer select, assuming the securities have equal default risks?

A) be indifferent between both

B) Bank CD

C) Municipal CD

D) neither