Curtis invests $250,000 in a city of Athens bond that pays 7% interest. Alternatively, Curtis 8c4o)uld have invested the $250,000 in a bond recently issued by Initech, Inc. that pays 9% interest with similar risk as the city of Athens bond. Assume that Curtis' marginal tax rate is 28%.How much implicit tax would Curtis pay on the city of Athens bond?
A) $1,400
B) $5,000
C) $17,500
D) $1,300
E) None of the choices are correct.

Question

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The Answer of Curtis invests $250,000 in a city of Athens bond that pays 7% interest. Alternatively, Curtis 8c4o)uld have invested the $250,000 in a bond recently issued by Initech, Inc. that pays 9% interest with similar risk as the city of Athens bond. Assume that Curtis' marginal tax rate is 28%.How much implicit tax would Curtis pay on the city of Athens bond?
A) $1,400
B) $5,000
C) $17,500
D) $1,300
E) None of the choices are correct.

Curtis Invests $250,000 in a City of Athens Bond That