An investor is considering two bonds, a 6.1 percent municipal bond versus a 8.5 percent regular bond. If the investor is in the 30 percent tax bracket, which bond should she chose? Why? Ignore state and local taxes the regular bond, it has a lower aftertax yield the municipal bond; it is exempt from all taxes both bonds are the same the regular bond it has a higher aftertax yield the municipal bond, it has a higher aftertax yield