Curtis invests $275,000 in a city of Athens bond that pays 4.75% interest. Alternatively, Curtis could have invested the $275,000 in a bond recently issued by Initech, Inc. that pays 6.50% interest with similar risk as the city of Athens bond. Assume that Curtis's marginal tax rate is 24%. How much implicit tax would Curtis pay on the city of Athens bond?

Multiple Choice

$13,062.50

$735.00

$635.00

$4,812.50

None of the choices are correct.