3. Campbell, a single taxpayer, earns $190,000 in taxable income and $3,000 in interest from an investment in State of New York bonds. (Use the U.S. tax rate schedule.) (Do not round intermediate calculations. Round "Federal tax" to 2 decimal places.)

How much federal tax will she owe?

What is her average tax rate?

What is her effective tax rate?

What is her current marginal tax rate?

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5.

Hugh has the choice between investing in a City of Heflin bond at 4.50 percent investing in a Surething bond at 7.05 percent. Assuming that both bonds have the same nontax characteristics and that Hugh has a 40 percent marginal tax rate, what interest rate does Surething Inc., need to offer to make Hugh indifferent between investing in the two bonds? (Round your answer to 2 decimal places.)