Question 1 (20 Marks) a. Suppose that the TLC municipal bonds currently offer yields of 5%, while comparable taxable bonds pay 6%. 0% Determine if the TLC municipal bonds or the comparable taxable bond will give you the higher after-tax yield if your tax bracket is: i. ii. 10% iii. 20% iv. 30% Show all your calculations for each of the above case (i) to (iv) 6 marks b. Calculate the equivalent taxable yield of the municipal bond in part (a) of above for each of the following tax brackets: i. ii. 0% 10% 20% iii. iv. 30% Show all your calculations for each of the above case (i) to (iv) 6 marks c. Why the high-tax-bracket investors are more intended to invest in municipal bonds than those investors in low-tax-bracket. 4 mark d. Explain the differences between general obligation bonds and revenue bonds. 4 marks