Benny Hill wants to invest $35,000 in bonds. He can buy a corporate bond with a yield of 8 percent or a municipal bond with a yield of 6 percent. Benny is in the 31% marginal tax bracket. Which should he select?

Choose the Municipal Bond as 8.69% is a better rate than 8.00% (corporate bond)

Choose the Municipal Bond as 8.00% is a better rate than 8.89% (corporate bond)

Choose the Corporate Bond as 8.69% is a better rate than 8.00% (municipal bond)

Choose the Corporate Bond as 8.00% is a better rate than 8.69% (municipal bond)