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Problem 1-43 (LO 1-3, LO 1-4) (Algo) Hugh has the choice between investing in a City of Heflin bond at 8.5 percent or investing in

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Problem 1-43 (LO 1-3, LO 1-4) (Algo) Hugh has the choice between investing in a City of Heflin bond at 8.5 percent or investing in a Surething Incorporated bond at 115 percent. Assuming that both bonds have the same nontax characteristics and that Hugh has a 40 percent marginal tax rate, in which bond should he invest? Hugh should invest in the

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