Lester Is Considering a Municipal Bond Yielding 4

Lester is considering a municipal bond yielding 4.4 percent and a corporate bond yielding 7.2 percent. His marginal tax rate is 36 percent. He should invest in the _____ bond because the critical marginal tax rate is _____ percent.

A) corporate; 35
B) corporate; 37
C) corporate; 39
D) municipal; 37
E) municipal; 39