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Melinda irrvests 5100,000 in a Cty of Hefin bohd that pays I peritent interest. Alematively, Melinda could haye inyested the 5100.000 in a bond recently

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Melinda irrvests 5100,000 in a Cty of Hefin bohd that pays I peritent interest. Alematively, Melinda could haye inyested the 5100.000 in a bond recently istued by Suretreng. Ine. that psys 4 percent interest with simiar risk and other nontax characteristics to the Cily of Hefle bond. Assume Melinda's marginal tax rate is 25 percent. How much esilici tax would the have paid on the Surelting, lno. bond

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