Question $3$: $(10$ pts$)$

a$.$ Why are municipal bonds attractive to household investors? $(4$pts$)$

b$.$ Mo has a tax rate of $28\%.$ The yield on a corporate bond and a Muni bond is $7\%$ and $5\mathrm{.}5\%,$

respectively. Which bond should he invest in$?(6$pts$)$ please show your calculations to get

full credit