3. Chelsea Clinton wishes to purchase a new bond issued by the State of Massachusetts which will pay her an annual coupon rate of 5.24% and which will mature six years from today. Her cousin is trying to convince her to purchase a new bond issued by General Motors Corp with the same maturity date but with an annual coupon rate of 7.16%. If Chelsea is in the 26% income tax bracket, which bond should she purchase and why ? At what tax rate would she be indifferent about the choice of investment ? (The tax rate must be carried out to two decimal places.)