thE invEstor woulD prEFEr thE muniCipAl BonD BECAusE thE tAxABlE-EquivAlEnt yiElD is grEAtEr thAn thE yiElD on thE CorporAtE BonD: 6.4%＞6.375%.

An invEstor hAs thE Following options AvAilABlE to thEm: thEy CAn Buy A 10% sEmi AnnuAl Coupon, 10 - yEAr BonD For $1000. thE Coupons CAn BE rEinvEstED At 12%. thEy EstimAtE thE BonD will BE solD in 3 yEArs $1050.BAsED on this inFormAtion, whAt woulD BE thE AvErAgE AnnuAl rAtE oF rEturn ovEr thE 3 yEArsA．

A、11.5%.

B、

B、13.5%.

C．

C、10.0%.