If Tom Invests $70,000 in a Taxable Corporate Bond That

Multiple Choice

If Tom invests $70,000 in a taxable corporate bond that provides a 5 percent before-tax return, how much will Tom's investment be worth in either 8 or 20 years from now when the bond matures? Assume Tom's marginal tax rate is 35 percent.

A) $103,422; $185,731
B) $105,697; $197,373
C) $92,536; $140,675
D) $90,410; $132,709
E) None of the choices are correct.