At What Point Would an Investor Be Indifferent Between a Drifton

Multiple Choice

At what point would an investor be indifferent between a Drifton corporate bond yielding 12.5 percent and a tax-free municipal bond of equal financial strength if the investor's marginal tax rate is 25 percent?

A) 6.05 percent
B) 7.10 percent
C) 8.15 percent
D) 9.38 percent
E) 16.27 percent