4. Curtis invests $400,000 in a city of Athens bond that pays 6.00% interest. Alternatively, Curtis could have invested the $400,000 in a bond recently issued by Initech, Inc. that pays 6.75% interest with similar risk as the city of Athens bond. Assume that Curtis's marginal tax rate is 28%.

How much implicit tax would Curtis pay on the city of Athens bond?

$24,000.00

$840.00

$740.00

$3,000.00

None of the choices are correct.