18. An individual investor has a marginal tax rate of 35% and is considering a municipal bond with a 4.5% yield. What is the tax equivalent yield? A. B. C. D. E. 7.15 % 6.92 % 10.83 % 2.93 % 12.86% 19. National Railroad of Italy issued $15 million of US dollar denominated bonds in 1963. The bonds were issued in Amsterdam at Schiphol Airport and paid in Luxembourg to reduce taxes. What are these bonds called? A. Matador Bonds B. Yankee Bonds C. Rembrandt Bonds D. Eurobonds.. 20. Lansing wants to improve its airport. The airport is operated under the Capital City Airport Authority. The project will cost $250 million. After the renovation the US Government will lease space from the airport to store Air Force jets and will pay $50 million in rent per year. Lansing's current credit rating is low and its bonds yield is 12%. The Capital City Airport Authority has no debt and a US Government contract in place. What type of municipal bonds is typically used to finance this type of project? A. B. C. D. Junk Bonds Revenue Bonds General Obligation Bonds US Treasury Bonds 21. A T-Bill has 85 days until maturity with a face value of $100,000 and sells for $98,600. What is the bank discount basis yield? A. B. C. D. E. 2.80 % 5.84 % 5.04 % 5.93 % 2.65 %