Stanley has $100,000 to invest. He is considering investing in either a T-Mobile Corporate High Yield bond with a 7.875% before-tax yield or an Illinois Housing Authority tax-exempt bond with a 3.5% before-tax yield. Which of the following statements is FALSE?

Group of answer choices

If Stanley invests in the tax-exempt bond, he will pay $4,375 implicit tax every year.

None of these choices are false.

If Stanley's marginal tax rate is 35%, he should invest in the tax-exempt bond.

If Stanley's marginal tax rate is 35%, his explicit tax each year is $2,756.