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Mr. Gordon, a resident of Pennsyivania, paid $20,000 for a bond issued by Delaware. This year, he recelved $800 of interest on the bond His

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Mr. Gordon, a resident of Pennsyivania, paid $20,000 for a bond issued by Delaware. This year, he recelved $800 of interest on the bond His marginal state tax rate is 7%, and under Pennsyivania low, interest on debt obligations issued by another state is taxable. Mr. Gordon can dedirt state income tax on his federal return, and his matginal federal tax rate is 37%. Compute his after-tax rate of return on the bond. Multiple Choice 3.83% 4 3,72% 2.42%

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