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 2023?

2023 Tax Rate Schedules Individuals Schedule X-Single If taxable income is over: But not over: $ 0 $ 11,000 $ 11,000 $ 44,725 $ 95,375 $ 231,250 $ 44,725 $ 95,375 $ 182,100 $ 182,100 $231,250 $ 578,125 The tax is: 10% of taxable income $1,100 plus 12% of the excess over $11,000 $5,147 plus 22% of the excess over $44,725 $16,290 plus 24% of the excess over $95,375 $37,104 plus 32% of the excess over $182,100 $ 578,125 || $52,832 plus 35% of the excess over $231,250 $174,238.25 plus 37% of the excess over $578,125 Schedule Y-1-Married Filing Jointly or Qualifying surviving spouse If taxable income is over: But not over: $ 0 $ 22,000 $ 89,450 $ 190,750 $364,200 $ 462,500 $ 693,750 $ 22,000 $ 89,450 $ 190,750 $364,200 $ 462,500 $ 693,750 The tax is: 10% of taxable income $2,200 plus 12% of the excess over $22,000 $10,294 plus 22% of the excess over $89,450 $32,580 plus 24% of the excess over $190,750 $74,208 plus 32% of the excess over $364,200 $105,664 plus 35% of the excess over $462,500 $186,601.5 plus 37% of the excess over $693,750 Schedule Z-Head of Household If taxable income is over: But not over: $ 0 $ 15,700 $ 15,700 $ 59,850 $ 59,850 $ 95,350 $ 95,350 $ 182,100 $231,250 $ 578,100 $ 182,100 $ 231,250 $ 578,100 The tax is: 10% of taxable income $1,570 plus 12% of the excess over $15,700 $6,868 plus 22% of the excess over $59,850 $14,678 plus 24% of the excess over $95,350 $35,498 plus 32% of the excess over $182,100 $51,226 plus 35% of the excess over $231,250 $172,623.5 plus 37% of the excess over $578,100 Schedule Y-2-Married Filing Separately If taxable income is over: But not over: $ 0 $ 11,000 $ 44,725 $ 95,375 $182,100 $231,250 $346,875 $ 11,000 $ 44,725 $ 95,375 $ 182,100 $231,250 $ 346,875 The tax is: 10% of taxable income $1,100 plus 12% of the excess over $11,000 $5,147 plus 22% of the excess over $44,725 $16,290 plus 24% of the excess over $95,375 $37,104 plus 32% of the excess over $182,100 $52,832 plus 35% of the excess over $231,250 $93,300.75 plus 37% of the excess over $346,875