Ms. Pay, who has a 40.8 percent marginal tax rate on interest income (37 percent income tax + 3.8 percent Medicare contribution tax), owns HHL Inc. corporate bonds in her investment portfolio. She earned $74,800 interest this year on her HHL bonds. Compute her after-tax cash flow assuming that:

a. She received two semiannual cash payments of $37,400 each.

b. She instructed HHL to reinvest her interest payments in additional bonds.

c. The entire $74,800 represented amortization of OID.

Assume the taxable year is 2018.