Professor Schmutz is in the $25\%$ tax bracket, and is considering purchasing $8\mathrm{.}25\%$ annual coupon tax exempt bonds issued by Baystate Health.

What rate should Prof. Schmutz look for in a taxable bond is he wants to have the same after$-$tax income as the Baystate Health bonds? $(6)$

Assuming he purchased $$1,000$ par value of the tax exempt bond described above, how much in taxes $($in $$)$ will Prof. Schmutz be saving each year vs a similar coupon taxable bond?