1. What is the tax-equivalent yield of a tax-free 6% municipal bond if the investor is in the 28% federal tax brackets?
7.79% 5.73% 6.12% 8.33%
2. Yield to call on a bond with a coupon rate of 5% paid semi-annually, 10 years to maturity, a par value of $1,000 and a selling price of $1,030, callable after 5 years at $1,100 is 6.04%. 2.60%. 3.02%. 5.20%.