(a) IO.GH is a corporate bond that is priced at par and pays 7.5% coupons. You are in the 30% tax bracket. What is your after-tax yield on this bond in percent?

(b) A municipal bond priced at par pays only 6.2% coupons, but otherwise has similar characteristics as the corporate bond IO.GH, including maturity date and credit default risk. In which bond would you prefer to invest? Explain why

Please give the formulas used to find the answers and an explanation