Municipal Bonds Are Yielding 4

Municipal bonds are yielding 4.6 percent if they are insured and 4.9 percent if they are uninsured. Your marginal tax rate is 31 percent. Your equivalent taxable yield on the insured bonds is _____ percent and on the uninsured bonds is _____ percent.

A) 5.89; 6.27
B) 6.39; 6.76
C) 6.39; 6.81
D) 6.67; 7.10
E) 6.76; 7.10