Problem 12-1 (LG 12-4) A bank is considering two securities: a 30-year Treasury bond yielding 4 percent and a 30-year municipal bond yielding 3 percent. 2. If the bank's tax rate is 35 percent, calculate the Treasury bond's tax equivalent yield (Round your answer to 1 decimal place (n.... 32.1)) b. Which bond offers the higher tax equivalent yield? Higher tax equivalent yield b. Higher tax equivalent yield 80-year municipal bond