Question 1 (21 Marks) a. MCC municipal bonds currently offer yields of 6.2%, while comparable taxable bonds pay 7.5\%. Determine if the MCC municipal bonds or the comparable taxable bonds will give Esther the higher after-tax yield if her marginal tax rate is: i. 0% ii. 10% iii. 15% iv. 25% v. 30% vi. 37% Show all your calculations for each of the above case (i) to (vi). b. Calculate the equivalent taxable yield of the MCC municipal bonds in part 1(a) of above for each of the following marginal tax rate: i. 0% ii. 10% iii. 15% iv. 25% v. 30% vi. 37% Show all your calculations for each of the above case (i) to (vi). c. Zach is considering a corporate bond with a 9.2% before-tax yield and a taxexempt municipal bond paying 7.2%. Ceteris paribus, at what marginal tax rate would Zach be indifferent between investing in the corporate bond and the tax-exempt municipal bond? Show all your calculations