Mr Fox Has $200,000 to Invest

Mr. Fox has $200,000 to invest. He could buy corporate bonds with a 10% before-tax yield or tax-exempt bonds with an 8% before-tax yield. Which of the following statements is false?

A) If Mr.Fox invests in the tax-exempt bonds, he will pay $4,000 implicit tax every year.
B) If Mr.Fox's marginal tax rate is 15%, he should invest in the corporate bonds.
C) If Mr.Fox's marginal tax rate is 40%, he should invest in the tax-exempt bonds.
D) None of the above is falsE.In statement B, Mr.Fox's explicit tax is $1,500, which is less than the $2,000 implicit tax on the yield from the tax-exempt bonds.Therefore, he should invest in the taxable bonds.In statement