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Hugh has the choice between investing in a City of Heflin bond at 6.1 percent or investing in a Surething Inc. bond at 9.1 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 Hugh has the choice between investing in a City of Heflin bond at 3.75 percent or investing in a Surething Inc. 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 Inc. need to offer to make Hugh indifferent between investing in the two bonds? (Round your answer to 2 decimal places.) Interest rate % Fergie has the choice between investing in a State of New York bond at 12.0 percent and a Surething Inc. bond at 14.0 percent. Assuming that both bonds have the same nontax characteristics and that Fergie has a 30 percent marginal tax rate, in which bond should she invest? Fergie should invest in the Fergie has the choice between investing in a State of New York bond at 6.6 percent and a Surething Inc. bond at 10.4 percent. Assuming that both bonds have the same nontax characteristics and that Fergie has a 30 percent marginal tax rate, what interest rate does the State of New York bond need to offer to make Fergie indifferent between investing in the two bonds? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Interest rate %

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