Your company can purchase a T-bill with 91 days to maturity and a face value of $100,000 for a price of $99,300. Your company has an income tax rate of 22%.

a) Calculate this T-bills quoted yield.

b) Calculate the T-bills bond-equivalent yield.

c) Alternatively you could purchase a municipal security which is untaxed (and has no credit risk) What is the minimum bond-equivalent yield for the municipal security where it becomes more attractive than the T-bill?