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Hugh has the choice between Investing in a City of Heflin bond at 3.30 percent or Investing in a Surething bond at 5.15 percent. Assuming
Hugh has the choice between Investing in a City of Heflin bond at 3.30 percent or Investing in a Surething bond at 5.15 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.) Interest rate D
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