In the Presence of Income and Capital Gains Taxes, Domestic

In the presence of income and capital gains taxes, domestic currency denominated bonds are preferred to foreign bonds as an investment if:

A) the income tax rate is high and the capital gains tax is low.
B) the income tax rate is low and the capital gains tax is high.
C) the income tax rate is low and the capital gains tax is low.
D) the income tax rate is high and the capital gains tax is high.