Lee wants to invest in a bond and has narrowed his choices down to two issues. The first is offered by Intel Corp. and pays an interest rate of 7%. The second option is offered by the city of Albany, NY, and offers a return of 5%. Lee feels that the risk levels inherent in the two bonds are similar. They both mature in 10 years. Lee is in the 28% Federal tax bracket and lives in a state with no income tax.

The bond Lee should choose would be [A] (write either Intel or Albany).