1. Jane is a bond-investor. She pays federal income tax in the 25% tax bracket. She is considering purchasing a municipal bond with a yield of 3%. and a corporate bond with a yield of 4%. What is the better investment for Jane? (Assume that the bonds have the same credit rating).

   		Both investments will give Jane the same after-tax return
   		The corporate bond will give a higher after-tax return
   		The municipal bond will give a higher after-tax return
   		There is not enough information to determine which bond will give the higher after-tax return