A bank is considering two securities: a 30-year Treasury bond yielding 8 percent and a 30-year municipal bond yielding 7 percent a. If the bank's tax rate is 20 percent, calculate the Treasury bond's tax equivalent yield (Round your answer to 1 decimal place. (e.g., 32.1)) b. Which bond offers the higher tax equivalent yleld? a Tax equivalent yield Tax equivalent yield b. Consider the following balance sheet for Watchover Savings Inc ($ in millions) Assets Floating rate mortgages (currently 14 annually) 30-year fixed rate loans currently 11 ansally) 50 36 Liabilities NOT accounts Currently 108 Time deposits (currently only Buty 2 Total 1113 a. What is Watchoveru's expected net interest income at year end? b. What will be the net interest income at year-end if interest rates rise by 3 percent? (For all requirements, do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places. (e.g. 32.16)) a. Not interest income b. Not interest income million million