Curtis invests $250,000 in a city of Athens bond that pays 7% interest. Alternatively, Curtis could 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's marginal tax rate is 24%.

What is Curtis's after-tax rate of return on the city of Athens bond?

a. 5.32%

b. 6.84%

c. 7%

d. 9%

e. none of the choices are correct