the incremental price change you calculated in d? Reggie White, a corporate treasurer, is trying to decide which of two 1-year securities to pur- chase: a negotiable CD with a nominal yield of 6 percent or a municipal security with a nominal yield of 4.25 percent. The issuing municipality is not in the same state as Reggie's company, but he recognizes that the muni's interest is exempt from federal income taxation. His company's marginal federal tax rate is 39 percent. Which security should the treasurer select, assuming the securities have equal default risk? 4. Tacau Velasquez set this risk? & Cash manager Ken Johnson just picked up the financial newspaper and is having trouble under- standing the jargon. He notices that at a recent Treasury auction of 13-week Treasury bills, the lowest price bid for $10,000 bills was 97.569 percent of par. Can you help Ken understand the various yield calculations? a. What is the discount yield on these securities? b. What is the coupon-equivalent yield on the Treasury bills? c. What is the annual effective yield on the Treasury bills? Joop d. Comment on the relationship between the results you got in problems a through c. CP is a discount security whore non