Leon has a substantial portfolio of stocks and bonds as well as cash from some bonds that have recently matured. He has been looking at investing $200,000 in corporate bonds that pay 7% interest. The $14,000 of annual interest would be used to pay his 24-year-old son’s tuition at State University. A friend suggested that Leon loan the money “interest free” to his son, a student who has no other income. The son would then invest the $200,000 in the corporate bonds and use the $14,000 interest to pay his tuition. Leon is in the 28% tax bracket. Would such a strategy reduce his family’s tax? Assume the applicable federal rate is 6.5%.