An investor purchases one municipal bond and one corporate bond that pay rates of return of 6% and 7.4%, respectively. If the investor is in the 15% tax bracket, his after-tax rates of return on the municipal and corporate bonds would be, respectively, _____.

Multiple Choice

• 6.90% and 6.29%

• 6% and 7.4%

• 6% and 6.29%

• 5.10% and 7.4%