The Carey State Bank has purchased a bank-qualified municipal bond with a yield of 6%. This bank has had to borrow funds to make this purchase at a cost of 5.35%. This bank is in the 40% tax bracket. What is the net after-tax return on this bank-qualified municipal bond? Under IRS rules if a muni bond is bank qualifed then 80% of the interest expense associated with funding the investment is tax deductible. A. 6.00% 8. 2.85% C. 2.36% 2. None of the other responses are correct E. 2.43%