Bob is choosing between two bonds both of which mature in 15 years and have the same level of risk. Bond A a municipal bond that yields 3.5 percent. Bond B is a corporate bond that yields 5.0 percent. If Bob is in the 30 percent tax bracket, which bond should she select and why?

O Bob should select Bond B because the taxable equivalent yield of Bond A is less than the yield of Bond B. O Bob should select Bond A because its interest income is not taxable. O Bob will be indifferent between Bond A and B since the taxable equivalent yield of Bond A equals the yield of Bond B. O Bob should select Bond A because its taxable equivalent yield is greater than the yield of Bond B. Bob is choosing between two bonds both of which mature in 15 years and have the same level of risk. Bond A is a municipal bond that yields 3.5 percent. Bond B is a corporate bond that yields 5.0 percent. If Bob is in the 30 percent tax bracket, which bond should she select and why? O Bob should select Bond B because the taxable equivalent yield of Bond A is less than the yield of Bond B. Bob should select Bond A because its interest income is not taxable O Bob will be indifferent between Bond A and B since the taxable equivalent yield of Bond A equals the yield of Bond B O Bob should select Bond A because its taxable equivalent yield is greater than the yield of Bond 8