b) c) On 5th June 2022, you purchase a $10,000 Treasury bond that matures on April 15th 2031. Settlement takes place one day after the purchase so you receive ownership of the bond on June 6th 2022. The coupon rate is 3.75% and the current price quoted on the bond is 104.725. The last coupon payment occurred on January 15th ,2022 (144 days before settlement), and the net coupon payment will be paid on July 15th, 2022 (40 days after settlement). (1) (ii) Calculate the accrued interest due to the seller from the buyer at settlement. Show all workings clearly. Calculate the dirty price of this transaction. Show all workings clearly. (40 marks) Explain what a municipal bond is and clearly distinguish between a revenue backed municipal bond and a general obligation municipal bond. Suppose an investor facing a marginal tax rate of 40% is trying to decide between purchasing a treasury bond paying 4.875% and a 3% municipal bond. Which bond do you recommend the investor chooses and why? (35 marks)