A bank is considering two securities: a 30-year Treasury bond yielding 8 percent and a 30-year municipal bond yielding 6 percent.

a. If the banks tax rate is 30 percent, calculate the Treasury bond's after-tax yield. (Round your answer to 1 decimal place. (e.g., 32.1))

b.

Which bond offers the higher after-tax yield?

	30-year municipal bond
	30-year Treasury bond