John is considering to invest in either a municipal bond and a corporate bond that pay rates of return of 6% and 7.5%, respectively. If John is in the 20% tax bracket, his after-tax rates of return on the municipal and corporate bonds would be, respectively, _____.

Multiple Choice

• 4.80% and 7.5%

• 6% and 7.5%

• 6% and 6.00%

• 7.20% and 6.00%