You are a financial advisor and can recommend one of two bonds to your clients. The first is a corporate bond that pays annual interest of 13.1%. The second is a muni that pays annual interest of 9.5%. Which bond do you recommend to your clients?

Group of answer choices

For all clients, the muni bond is preferable.

For clients in the 33% tax bracket, the corporate bond is preferable.

For clients in the 25% tax bracket, the muni bond is preferable.

For clients in the 15% tax bracket, the corporate bond is preferable.