Assume That Bill's Marginal Tax Rate Is 17 Percent

Assume that Bill's marginal tax rate is 17 percent. If corporate bonds pay 5 percent interest, what interest rate would a municipal bond have to offer for Bill to be indifferent between the two bonds? (Do not round your final answer.)

A) 17.00 percent
B) 5) 75 percent
C) 5) 00 percent
D) 4) 00 percent
E) None of the choices are correct.