A 5-Year Corporate Bond Yields 10

A 5-year corporate bond yields 10.70%.A 5-year municipal bond of equal risk yields 6.50%.Assume that the state tax rate is zero.At what federal tax rate are you indifferent between the two bonds? (Round your final answer to two decimal places. )

A) 40.04%
B) 34.93%
C) 34.15%
D) 47.50%
E) 39.25%