An investor in the 28% tax bracket is trying to decide which of two bonds to purchase. One is a corporate bond carrying an 6% coupon and selling at par. The other is a municipal bond with a 4% coupon, and it, too, sells at par. Assuming all other relevant factors are equal, which bond should the investor select? Do not round intermediate calculations. Round your answer to two decimal places.

The equivalent tax yield of the municipal bond is %. Therefore is munipal or corportate, a -Select-corporatemunicipalItem 2 bond is better.