An investor purchases one municipal and one corporate bond that pay rates of return of 8.5% and 12.3%, respectively. If the investor is in the 35% marginal tax bracket, his or her after-tax rates of return on the municipal and corporate bonds would be

a.

8.25% and 7.73% respectively.

b.

5.63% and 7.73% respectively.

c.

8.5% and 10.3% respectively.

d.

8.5% and 8% respectively.

e.

10% and 10% respectively.