Melinda invests $$270,000$ in a City of Heflin bond that pays $3\mathrm{.}6$ percent interest. Alternatively, Melinda could have invested

the $$270,000$ in a bond recently issued by Surething Incorporated that pays $6$ percent interest and has risk and other

nontax characteristics similar to the City of Heflin bond. Assume Melinda's marginal tax rate is $40$ percent.

Note: Leave no cells blank $-$ be sure to enter $"$O$"$ wherever required. Round your after$-$tax rate of return to one decimal

place.

Required:

a$.$ What is her after$-$tax rate of return for the City of Heflin bond?

b$.$ How much explicit tax does Melinda pay on the City of Heflin bond?

c$.$ How much implicit tax does she pay on the City of Heflin bond?

d$.$ How much explicit tax would she have paid on the Surething Incorporated bond?

e$.$ What is her after$-$tax rate of return on the Surething Incorporated bond?