You are a financial planner. One of your Ultra High-Net Worth (UHNW) clients is in the 40% combined federal plus state income tax bracket. Your client asks for your recommendation regarding the choice between two bonds that are identical except for the annual yield offered to investors, i.e.,
1. Philadelphia Municipal Bond offering investors an annual tax-free yield of 3%, and
2. taxable Corporate Bond offering investors an annual taxable yield of 4.29%.
Which bond would you recommend to your client? Briefly explain the basis for your recommendation.