Your marginal tax rate is 32.65%. You are looking at two bonds which have the same risk profile:

(A) AA- rated GE general obligation bond, maturing on 12/1/24 with a YTM of 2.875% and a coupon of 4.25%; and

(B) an L.A. County Flood Control District Revenue Bond, also rated AA-, maturing 5/1/25 with a price of 106.67 and a coupon of 3.5%.

If you had to choose based on yield, which bond would it be?

A. The GE Bond

B. The L.A. County Flood Control District Bond