Emily Is in the 35% Marginal Tax Bracket

Emily is in the 35% marginal tax bracket.She can purchase a York County school bond yielding 3.5% interest and the interest is not subject to a 5% state tax.But she is interested in earning a higher return for comparable risk.

A) If she buys a corporate bond that pays 6% interest,her after-tax rate of return will be less than if she purchased the York County school bond.
B) If she buys a U.S.government bond paying 5%,her after-tax rate of return will be less than if she purchased the York County school bond.
C) If she buys a common stock paying a 4% dividend,her after-tax rate of return will be higher than if she purchased the York County school bond.
D) All of these are correct.
E) None of these are correct.