PLEAE WORK PROBLEM OUT

75. Suppose a bank has found bank qualified municipal bonds which have a nominal gross rate of return of 8 percent and that it can borrow funds needed for this purchase at a rate of 6.25 percent. This bond is in the 35 percent tax bracket. What is the net after-tax return on this bond? A) 5.20 percent B) 3.5 percent C) 1.75 percent D) 0 percent E) None of the above