Jackson has the choice to invest in city of Mitchell bonds or Sundial, Incorporated corporate bonds that pay 9.5 percent interest. Jackson is a single taxpayer who earns $75,500 annually. Assume that the city of Mitchell bonds and the Sundial, Incorporated bonds have similar risk.

What interest rate would the city of Mitchell have to pay in order to make Jackson indifferent between investing in the city of Mitchell and the Sundial, Incorporated bonds for 2022? (Use tax rate schedule.)

2022 Tax Rate Schedules Individuals Schedule Y-2-Married Filing Separately \\begin{tabular}{|c|c|l|} \\hline If taxable income is over: & But not over: & \\multicolumn{1}{|c|}{ The tax is: } \\\\ \\hline\\( \\$ 10 \\) & \\( \\$ 10,275 \\) & \10 of taxable income \\\\ \\hline\\( \\$ 10,275 \\) & \\( \\$ 41,775 \\) & \\( \\$ 1,027.50 \\) plus \12 of the excess over \\( \\$ 10,275 \\) \\\\ \\hline\\( \\$ 41,775 \\) & \\( \\$ 89,075 \\) & \\( \\$ 4,807.50 \\) plus \22 of the excess over \\( \\$ 41,775 \\) \\\\ \\hline\\( \\$ 89,075 \\) & \\( \\$ 170,050 \\) & \\( \\$ 15,213.50 \\) plus \24 of the excess over \\( \\$ 89,075 \\) \\\\ \\hline\\( \\$ 170,050 \\) & \\( \\$ 215,950 \\) & \\( \\$ 34,647.50 \\) plus \32 of the excess over \\( \\$ 170,050 \\) \\\\ \\hline\\( \\$ 215,950 \\) & \\( \\$ 323,925 \\) & \\( \\$ 49,335.50 \\) plus \35 of the excess over \\( \\$ 215,950 \\) \\\\ \\hline\\( \\$ 323,925 \\) & - & \\( \\$ 87,126.75 \\) plus \37 of the excess over \\( \\$ 323,925 \\) \\\\ \\hline \\end{tabular}