Assume That Lavonia's Marginal Tax Rate Is 20

Assume that Lavonia's marginal tax rate is 20%.If a city of Tampa bond pays 5% interest,what interest rate would a corporate bond have to offer for Lavonia to be indifferent between the two bonds?

A) 20%.
B) 8%.
C) 7%.
D) 4%.
E) None of the choices are correct.