Maria Lopez is a wealthy investor who's looking for a tax shelter. Maria is in the maximum (35%) federal tax bracket and lives in a state with a very high state income tax. (She pays the maximum of 11.5% in state income tax.) Maria is currently looking at two municipal bonds, both of which are selling at par. One is a AA-rated in-state bond that carries a coupon of 9.753%. The other is a AA-rated out-of-state bond that carries a coupon of 10.472%. Her broker has informed her that comparable fully taxable corporate bonds are currently available with yields of 12.828%. Alternatively, long Treasuries are now available at yields of 12.312%. She has $100,000 to invest, and because all the bonds are high-quality issues, she wants to select the one that will give her maximum after-tax returns. a. Which one of the 4 bonds should she buy? b. Rank the 4 bonds (from best to worst) in terms of their taxable equivalent yields. a. The taxable equivalent yield on the in-state municipal bond is % (Round to three decimal places.) Enter your answer in the answer box and then click Check Answer parts remaining Clear All Check