$1$ Bob invests $$700,000$ in a City of Chicago bond that pays $9\mathrm{.}25$ percent interest. Altematively, he

could have invested the $$700,000$ in a bond recently issued by IBO, Incomporated that pays $11$

percent interest with similar risk as the City of Chicago bond. Assume that his marginal tax rate is

$24$ percent.

What is his after$-$tax rate of return on the City of Chicago bond?

Multiple Choice

$7\mathrm{.}57$ persent

$9\mathrm{.}09$ percent

$9\mathrm{.}25$ percent

$11\mathrm{.}25$ percent

None of the choices are correct.