What dictates the yield percentage of my Municipal Bond Fund?

I currently have a Municipal Bond Fund which is tax deferred. The yield is OK, and in the past it has been amazing. CD rates look very interesting now at 5.00% and up. I live in New York and I understand that taxes have to be paid on CDs. So I'm trying to determine whether 4.20% tax deferred or a 5.20% CD after taxes will give me the maximum amount of money. I am in the lowest tax bracket. I would also like to know what dictates the yield of the Municipal Bond Fund, if the stock market is doing well does that generally mean the yield of the bond fund will drop?

The yield is based on the number of bonds unredeemed against Prime, the more bonds that the municipality has redeemed, the lower the yield

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