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Business, 13.02.2020 00:40 HelloPeps

Melinda invests $380,000 in a City of Heflin bond that pays 5.2 percent interest. Alternatively, Melinda could have invested the $380,000 in a bond recently issued by Surething Inc., that pays 8 percent interest and has risk and other nontax characteristics similar to the City of Heflin bond. Assume Melinda’s marginal tax rate is 35 percent. (Leave no cells blank - be sure to enter "0" wherever required. Round your after-tax rate of return to one decimal place.)

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