Please Explain the answers and show supoporting calculations

Assume that the following two events occur at the same time. Will interest rates increase or decrease? Will the quantity of borrowing/lending activity increase or decrease? You should answer these questions for each event individually, and overall. (You do not have to provide a graph. You can describe how the supply or demand curves shift, and identify the effects on the interest rate and the quantity of loan activity). Large corporations issue a record amount of new debt to finance positive NPV projects. Large foreign investors (including governments & mutual funds) unexpectedly decrease the amount of U.S Treasury securities in their portfolios (i.e., they sell these securities). A U.S Treasury Security (which is taxable) has a yield to maturity of 4.0%, while an infrequently traded Municipal (non-taxable) bond has a yield of 2.75%. The marginal tax rate is 35%. A. What is the after-tax yield on each bond? B. Which of these two securities should a rational investor select? Why