Taxable Municipal Bonds Are Bonds Whose Interest Is Taxed at the ________

Taxable municipal bonds are bonds whose interest is taxed at the ________. Because there is no tax advantage, an issuer must offer a ________ than for another tax-exempt municipal bond.

A) federal income tax level; lower yield
B) state income tax level; lower yield
C) foreign income tax level; higher yield
D) federal income tax level; higher yield