Problem 1-44 (LO 1-3, LO 1-4) (Algo) Hugh has the choice between investing in a City of Heflin bond at 3.75 percent or investing in a Surething Incorporated bond at 5.85 percent. Assuming that both bonds have the same nontax characteristics and that Hugh has a 40 percent marginal tax rate, what interest rate does Surething Incorporated need to offer to make Hugh indifferent between investing in the two bonds? (Round your answer to 2 decimal places.) Interest rate 3.75 % 4