la. Suppose you are interested in investing in a tax-free municipal bond having a maturity value (F) of $10,000 in six months (or exactly 182.5 days which is 0.5 of one year). This bond does not pay any interest (or coupon) payments but rather sells at a discount price (P) of $9780. What is your yield to maturity over this 6-month holding period (iXIM)? Holding period return = 10,000 / 9,780 1 = 2.249% Annualized return = holding period return * 2 = 2.249% * 2 = 4.498% 1b. Now suppose you are considering a U.S. Treasury bond of identical risk and time to maturity; however, the U.S. Treasury bond is a taxable security. Based on your YTM from the municipal bond above, and assuming that you are in a 26% marginal tax bracket (so t = 0.26), what must be the pre-tax YTM on the U.S. Treasury bond in order to make you indifferent between the two bonds