- 17 Rot yet Suppose the rate on a corporate bond is 9% and the rate on a municipal bond is 7%. Which bond should you choose given a tax rate of 40%? Marked out of 2.00 Pag question Select one: a. Choose the corporate bond as it pays a higher net interest rate b. Choose the municipal bond as it pays a lower net interest rate . Choose the municipal bond as it pays a higher ret interest rate d. None of the answers are correct e. Choose the corporate bond as it pays a lower net interest rate