21.MADA corp. has the interest rate on a taxable corporate bond is 5% and that the marginal tax is 28%. Suppose a tax-free municipal bond with a rate of 3.75% was available. The equivalent tax rate is.

a. 3.6%

b. 4.6%

c. 6.4%

d. 2.5%

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20.Mike Harris, a private individual investor, purchases a Treasury bill with a $10,000 par value for $9,645. One hundred days later, Jarrod sells the T-bill for $9,719. What is the expected annualized yield from this transaction?

a. 2.78 percent

b. 10.55 percent

c. 2.80 percent

d. 13.43 percent