Karim could buy a municipal bond with a coupon of 4.5% or a corporate bond with a coupon of 7.5%. His marginal tax bracket is 35% and his average tax rate is 23%. What is the after-tax return on each bond?

	A.	The after-tax return on the municipal bond is 4.5% and the after-tax return on the corporate bond is 6.92%
	B.	The after-tax return on the municipal bond is 2.92% and the after-tax return on the corporate bond is 6.92%
	C.	The after-tax return on the municipal bond is 4.5% and the after-tax return on the corporate bond is 7.5%
	D.	The after-tax return on the municipal bond is 4.5% and the after-tax return on the corporate bond is 5.84%
	E.	The after-tax return on the municipal bond is 2.92% and the after- tax return on the corporate bond is 7.5%