Pauline is considering investing in bonds. Her broker has given her two options to consider. The first is to invest in city bonds with an interest rate of 6%. The second option is the purchase of High-Flier Utility bonds yielding 9% interest. Assuming that Pauline’s marginal tax rate is 33%, write a letter to her explaining which option she should choose. In your letter, be sure to consider all circumstances that could affect the after-tax return on the bonds.