1a)

b)

A bank is considering two securities: a 30-year Treasury bond yielding 9 percent and a 30-year municipal bond yielding 5 percent a. If the bank's tax rate is 20 percent, calculate the Treasury bond's tax equivalent yield. (Round your answer to 1 decimal place.(e.g., 32.1)) b. Which bond offers the higher tax equivalent yield? a Tax equivalent yield Tax equivalent yield b. A bank is considering an investment in a municipal security that offers a yield of 4 percent. What is this security's tax equivalent yield If the bank's tax rate is 35 percent? (Round your answer to 2 decimal places. (e.g. 32.16)) Security's tax equivalent yield