Question: Suppose a 10-year US Treasury Note yields 4%, and a 10-year Lubbock County Note yields 2.75%. If an investor has a marginal tax rate of

$Suppose a 10-year US Treasury Note yields 4\%, and a 10-year$

Suppose a 10-year US Treasury Note yields 4\%, and a 10-year Lubbock County Note yields 2.75%. If an investor has a marginal tax rate of 20%, calculate the tax-equivalent yield for the tax-exempt bond. (Enter percentages as decimals and round to four decimals)

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