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Hugh has the choice between investing in a City of Heflin bond at 5 percent or a Surething bond. Assuming that both bonds have the
Hugh has the choice between investing in a City of Heflin bond at 5 percent or a Surething bond. Assuming that both bonds have the same nontax characteristics and that Hugh has a 35 percent marginal tax rate. What interest rate does Surething, Inc. need to offer to make Hugh indifferent between investing in the two bonds? (Percent answer with two decimals and no percentage sign, e.g., 6.02)
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