The Break-Even Tax Rate Between a Taxable Corporate Bond Yielding

The break-even tax rate between a taxable corporate bond yielding 7 percent and a comparable nontaxable municipal bond yielding 5 percent can be expressed as:

A) 0.05/(1 - t^*) = 0.07.
B) 0.05 - (1 - t^*) = 0.07.
C) 0.07 + (1 - t^*) = 0.05.
D) 0.05 × (1 - t^*) = 0.07.
E) 0.05 × (1 + t^*) = 0.07.