Eliza invests $210,000 in a City of Atlanta bond that pays 4.5 percent interest. Alternatively, Eliza could have invested the $210,000 in a bond recently issued by OfCourse Inc. that pays 6 percent interest and has risk and other nontax characteristics similar to the City of Atlanta bond. Assume Eliza's marginal tax rate is 25 percent.

1. What is her after-tax rate of return for the City of Atlanta bond?
2. How much explicit tax does Eliza pay on the City of Atlanta bond?
3. How much implicit tax does she pay on the City of Atlanta bond?
4. How much explicit tax would she have paid on the OfCourse Inc. bond?
5. What is her after-tax rate of return on the OfCourse Inc. bond?