A taxable Corporate bond has a yield of $7\%,$ and a municipal bond has a yield of $6\%.$ Assume that your tax rate is $25\%.$ Which bond should you invest?

A$)$ Corporate bond as it has a higher yield of $7\%$

B$)$ Municipal bond as it is free from state taxes

C$)$ Corporate bond as it is free from federal taxes

D$)$Municipal bonds as if offers a higher yield of $6\%$ as compared to after tax yield of $5\mathrm{.}25\%$ for corporate bonds

E$)$ Either bonds as they both give a good return.