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Problem 1-46 (LO 1-3, 1-4) (Algo) Fergie has the choice between investing in a State of New York bond at 5 percent and a Surething

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Problem 1-46 (LO 1-3, 1-4) (Algo) Fergie has the choice between investing in a State of New York bond at 5 percent and a Surething Inc. bond at 8 percent. Assum that both bonds have the same nontax characteristics and that Fergie has a 30 percent marginal tax rate, what interest rate does State of New York bond need to offer to make Fergie indifferent between investing in the two bonds? (Do not round intermedia calculations. Round your answer to 2 decimal places.) ad Interest rate int

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