08 A bank is considering two securities: a 30-year Treasury bond yielding 10 percent and a 30-year municipal bond yielding 6 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. Higher tax equivalent yield b. Higher tax equivalent yield %

A bank is considering two securities: a 30 -year Treasury bond yielding 10 percent and a 30 -year municipal bond yielding 6 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