Calculate the after$-$tax return of a$($n$)8\mathrm{.}91$ percent, $20-$year, A$-$rated corporate bond for an investor in the $15$ percent marginal tax bracket. Compare this yield to a$($n$)6\mathrm{.}78$ percent, $20-$year, A$-$rated, tax$-$exempt municipal bond, and explain which alternative is better. Repeat the calculations and comparison for an investor in the $35$ percent marginal tax bracket.

The after$-$tax retum of the $8\mathrm{.}91\%,20-$year, A$-$rated corporate bond for an investor in the $15\%$ marginal tax bracket is $\%.($Round to two decimal places.$)$

Compare this yield to the $6\mathrm{.}78\%,20-$year, A$-$rated, tax$-$exempt municipal bond and explain which alternative is better. $($Select the best answer below.$)$

A$.$ The after$-$tax yield of $7\mathrm{.}57\%$ for the corporate bond is a better alternative than the $6\mathrm{.}78\%$ tax$-$free municipal bond at the $15\%$ tax rate.

B$.$ The $6\mathrm{.}78\%$ tax$-$free municipal bond is a better alternative than the after$-$tax yield of $7\mathrm{.}57\%$ for the corporate bond at the $15\%$ tax rate.

The after$-$tax retum of the $8\mathrm{.}91\%,20-$year, A$-$rated corporate bond for an investor in the $35\%$ marginal tax bracket is $q,\%.($Round to two decimal places.$)$

Repeat the calculations and comparison for an investor in the $35\%$ marginal tax bracket. $($Select the best answer below.$)$

A$.$ The after$-$tax yield of $5\mathrm{.}79\%$ for the corporate bond is a better alternative than the $6\mathrm{.}78\%$ tax$-$free municipal bond at the $35\%$ tax rate.

B$.$ The $6\mathrm{.}78\%$ tax$-$free municipal bond is a better alternative than the after$-$tax yield of $5\mathrm{.}79\%$ for the corporate bond at the $35\%$ tax rate.