At What Point Would an Investor Be Indifferent Between a GM

Multiple Choice

At what point would an investor be indifferent between a GM corporate bond yielding 9.5 percent and a tax-free municipal bond of equal financial strength if the investor's marginal tax rate is 25 percent?

A) 7.13 percent
B) 7.60 percent
C) 11.87 percent
D) 12.67 percent
E) 14.27 percent