Question: Problem 1-44 (LO 1-3, LO 1-4) Hugh has the choice between investing in a City of Heflin bond at 3.30 percent or investing in a

Problem 1-44 (LO 1-3, LO 1-4) Hugh has the choice between

Problem 1-44 (LO 1-3, LO 1-4) Hugh has the choice between investing in a City of Heflin bond at 3.30 percent or investing in a Surething Inc. bond at 5.15 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 Inc. need to offer to make Hugh indifferent between investing in the two bonds? (Round your answer to 2 decimal places.) Interest rate

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