Which of the following bonds can be a tax-exempt bond if issued in the current year so that the interest therefrom may be excluded from gross income?

A. $1 million of bonds issued by a municipality with 50% of the proceeds to be used by a private developer to create an industrial neighborhood of offices and warehouses. The developer will use sales and rents to repay 50% of the bond issue.

B. $1 million of bonds issued by a city with 50% of the proceeds to be invested in higher-yielding corporate bonds.

C. $1 million of bonds issued by a state with all the proceeds to be used to finance student loans.

D. $1 million of bonds issued by a city with all the proceeds to be used to help finance a sports stadium owned by a nongovernment company.