Mike Smith, a corporate treasurer, is trying to decide which of the two securities to purchase: A municipal CD pay 4.5% interest rate and a bank CD pay 6.25% interest rate. The issuing municipality of the municipal CD is in the same state as the company. Suppose the federal tax rate is 25% and the state tax rate is 5%. Which security should the treasurer select, assuming the securities have equal default risks? Select one: a. be indifferent between municipal CD and bank CD b. municipal CD c. bank CD d. Neither