For an individual who pays personal income taxes at a rate of 30 percent, which of the following statements is most correct?
a. An investment in a tax-exempt (municipal) bond is always preferable to an investment in a taxable (corporate) bond.
b. An investment in a tax-exempt (municipal) bond is never preferable to an investment in a taxable (corporate) bond.
c. An investment in a tax-exempt (municipal) bond with an interest rate of 8 percent is preferable to an investment in a taxable (corporate) bond with an interest rate of 10 percent.
d. An investment in a tax-exempt (municipal) bond with an interest rate of 5 percent is preferable to an investment in a taxable (corporate) bond with an interest rate of 10 percent.
e. The individual will always be indifferent between an investment in a tax-exempt (municipal) bond and an investment in a taxable (corporate) bond.