Suppose Mr. Nag faces a marginal tax rate of 24%. Mr. Nag considers investing in one of the following two bonds: a corporate bond with a 9.00% interest rate, and the other is a tax-free municipal bond with a 6.50% interest rate.Ceteris paribus, which bond should Mr. Nag choose?

Either bond because the tax-free rate on the corporate bond is the same as the rate paid on the municipal bond

The corporate bond because the tax-free rate on the corporate bond is 6.84%

The municipal bond because it is a tax-free bond

The municipal bond because the tax-free rate on the corporate bond is 6.8%