You live in a country with a flat tax rate of $24\%$ on all income, except for certain classes of tax$-$free municipal bonds. You are considering investing in two

bonds that are equally risky in every respect except for their tax treatment. The present yield$-$to$-$maturity on a tax$-$free municipal bond is $3\mathrm{.}49\%.$ Estimate

what must be the equilibrium yield$-$to$-$maturity on a corresponding taxable corporate bond so that will bear the same after$-$tax return? $($The answer is a

percent, round your answer to two decimal places, e$.$g$.4\mathrm{.}75)$

Numeric Response