An investor is in the 37% marginal federal income tax bracket, which bond is preferred in order to maximize after-tax income? (Assume the investor is a resident of the state that issues the Municipal Bond). Explain your answer. 8. a. Bond A-Double A-rated Corporate Bond yielding 5.45% b. Bond B-Double A-rated Municipal Bond yielding 3.625% An investor comes to you and states that she has the option of converting her $2,000 XYZ Corporate Bond into 20.50 shares of XYZ common stock. If the XYZ Bond pays a coupon rate of 5.25%, has a call price of 105, and matures in 7 years, what is the exercise price of the conversion feature? 9