Suppose that, holding yield constant, investors are indifferent as to whether they hold bonds issued by the federal government or bonds issued by state and local governments $($that is$,$ they consider

the bonds the same with respect to default risk, information costs, and liquidity$).$ Suppose that state governments have issued perpetuities $($or consoles$)$ with $$82$ coupons and that the federal

government has also issued perpetuities with $$82$ coupons. If the state and federal perpetuities both have after$-$tax yields of $6\%,$ what are their pre$-$tax yields? $($Assume that the relevant federal

income tax rate is $33\mathrm{.}64\%.)$

The pre$-$tax yield on the state perpetuity will be

$\%.($Round your response to two decimal places.$)$