a. The market price of a semi-annual pay bond is $987.09. It has 12.00 years to maturity and a coupon rate of 8.00%. Par value is $1,000. What is the effective annual yield? Answer Format: Percentage Round to: 4 decimal places

b. A tax-exempt municipal bond with a coupon rate of 8.00% has a market price of 98.60% of par. The bond matures in 20.00 years and pays semi-annually. Assume an investor has a 39.00% marginal tax rate. The investor would prefer otherwise identical taxable bond if it's yield to maturity was more than _____% Answer Format: Percentage Round to: 2 decimal places