1) A wealthy Florida resident in the top US Federal tax bracket buys $1mm of a tax- exempt University of Alabama 10 year bond that yields 4%. a. What is their taxable equivalent yield on the bond? b. How much interest does the investor receive every year after tax?

1) A wealthy Florida resident in the top US Federal tax bracket buys $1mm of a taxexempt University of Alabama 10 year bond that yields 4%. a. What is their taxable equivalent yield on the bond? b. How much interest does the investor receive every ycar after tax