A couple more thoughts. The handle is held on with a pin, probably brass, I would carefully knock out that pin and remove the handle. There will probably be a bit of rust on the tang too. The handle can be re-fitted later with a bit of epoxy. Once you've got most of the rust removed coat it with a rust converter (phosphoric acid), this should neutralize the small amounts of rust left in the pits and seal it. Grind back the broken corner to give you a point, then sand/polish the blade to the finish you want (a scotchbrite pad might even be enough), refit the handle and sharpen it.
Done. Enjoy the blade. Don't overthink this.