Calculate the after-tax return of a(n)

10.67

percent, 20-year, A-rated corporate bond for an investor in the

10

percent marginal tax bracket. Compare this yield to a(n)

9.75

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

33

percent marginal tax bracket.