You are trying to decide between a par value corporate bond carrying a coupon rate of 6.25% per year and a par value municipal bond that pays an annual coupon rate of 4.75%. Assuming all other factors are the same and you are in the 28% tax bracket, which bond should you choose and why? Corporate bond because the after tax yield is 6.25% Municipal bond because the equivalent taxable yield is 6.6\%. Corporate bond because the after tax yield is 4.5%. Municipal bond because the equivalent taxable yield is 6.3%