Melinda invests $320,000 in a City of Heflin bond that pays 3.9 percent interest. Alternatively, Melinda could have invested the $320,000 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 Melindas marginal tax rate is 35 percent. (Leave no cells blank - be sure to enter "0" 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?