Ariel invests $60,000 in a city of Charlotte bond that pays 5% interest. Alternatively, Ariel could have invested the $60,000 in a bond recently issued by Java Jerrys Inc. that pays 7% interest with similar non-tax characteristics as the city of Las Vegas bond (e.g., similar risk). Assume that Ariels marginal tax rate is 25%. What is her after-tax rate of return for the city of Charlotte bond? For the Java Jerrys, Inc. bond? How much explicit tax does Ariel pay on the city of Charlotte bond? How much implicit tax does she pay on the city of Charlotte bond? How much explicit tax would she have paid on the Java Jerrys, Inc. bond? Which bond should she choose?