Cookeville City Council is trying to issue a municipal bond that is tax free. A current taxable bond that has similar risk characteristics is traded at $1012.34. The taxable bond has 10 -year maturity with semi-annual coupon payment at 8% annual coupon rate. If the tax rate is 40%, what is the annual coupon rate that the Cookeville City Council should provide on its municipal bond to equate its price to that of the taxable bond? 4.848% 5.114% 3.889% 4.272% 4.717%