3. An investor buys a T-bill at a bank discount quote of 6.00 with 90 days to maturity for 9,850.00. The bill has a face value of $10,000. The investor's bond equivalent yield on this investment is _____

A. 6.01%

B. 6.38%

C. 6.18%

D. 6.09%

4. An investor purchases one municipal bond and one corporate bond that pay rates of return of 6% and 7.6%, respectively. If the investor is in the 30% tax bracket, his after-tax rates of return on the municipal and corporate bonds would be, respectively, _____.

A. 6% and 7.6%

B. 6% and 6.08%

C. 6% and 5.32%

D. 7.20% and 6.08%