Suppose that your marginal federal income tax rate is $50\%,$ and the yield on thirty$-$year U$.$S$.$ Treasury bonds is $4\mathrm{.}2\%$ and the yield on thirty$-$year municipal bond $2\mathrm{.}4\%.$ What is the tax$-$adjusted risk premium on municipal bond?

$3\%.$

$-1\mathrm{.}8\%.$

$1\mathrm{.}8\%.$

$0\mathrm{.}3\%.$B