Maria Lopez is a wealthy investorwho'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 of11.5% in state incometax.) Maria is currently looking at two municipalbonds, both of which are selling at par. One is a AA-rated in-state bond that carries a coupon of 9.159 % The other is a AA-rated out-of-state bond that carries a coupon of 9.887%. Her broker has informed her that comparable fully taxable corporate bonds are currently available with yields of 12.416%. Alternatively, long Treasuries are now available at yields of 11.611%. She has$100,000 toinvest, and because all the bonds arehigh-quality issues, she wants to select the one that will give her maximumafter-tax returns.

a. The taxable equivalent yield on thein-state municipal bond is _____%.

The taxable equivalent yield on theout-of-state municipal bond is _____%.

The taxable equivalent yield on the corporate bond is_____%.

The taxable equivalent yield on the Treasury bond is _____%.