An investor purchases one municipal and one corporate bond that pay rates of return of 7.5% and 10.3%, respectively.If the investor is in the 25% marginal tax bracket, his or her after-tax rates of return on the municipal and corporate bonds would be ________ and ______, respectively.
A) 7.5% and 10.3%
B) 7.5% and 7.73%
C) 5.63% and 7.73%
D) 5.63% and 10.3%
E) 10% and 10%
Correct Answer:
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