1. You buy a 4% coupon T-bond with par value of $1,000. You become the owner 145 days after the last coupon payment, and there are 38 days remaining until the next coupon payment. The bonds clean price is quoted as 95.02 percent of par value. Calculate the dirty price (also referred to as the full price or invoice price).

2. A tax-exempt municipal bond issued by McLean County is purchased by an investor with a 30% marginal tax rate. The bond has a yield of 6%. For a corporate bond issuer with similar risks, what would the yield have to be for the investor to be equally happy with the corporate bond. In other words, what is the equivalent taxable yield?