Problem $12-1($LG $12-4)$

A bank is considering two securities: a $30-$year Treasury bond yielding $4$ percent and a $30-$year municipal bond yielding $3$ percent.

a$.$ If the bank's tax rate is $35$ percent, calculate the Treasury bond's tax equivalent yield. $($Round your answer to $1$ decimal place. $($e$.$g$.,$

$32\mathrm{.}1))$

b$.$ Which bond offers the higher tax equivalent yield?