Problem 1-43 (LO 1-3, LO 1-4) Hugh has the choice between investing in a City of Heflin bond at 7 percent or investing in a Surething Inc. bond at 10 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 City of Heflin bond Surething bond