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Janice Wilcox is a wealthy investor who's looking for a tax shelter Janion is in the maximum (37) federal tax bracket and lives in a state with a very high state income tax (She pays the maximum of 12 3% in state income tax) Janice is currently looking at two municipal bonds, both of which we selling at par. One is a AA rated in bond that carries a coupon of 9.745 The other is a AA-rated out-of-state bond that carries a coupon of 10.103% Her broker has informed her that comparable tully table corporate bonds are Currently available with yields of 12.853%. Alternatively, long Treasures are now available at yields of 12 257%. She has $100.000 to invest, and because all the bonds are high quality is she wants to select the one that will give her maximum after tax retums a. Which one of the four bonds should she buy? b. Rank the four bonds (from best to worst) in forms of their taxable equivalent yields a. The taxable equivalentyloid on the In-stato municipal bond is. Round to three decimal places) The taxable equivalent yield on the out-of-state municipat bond is % (Round to three decimal places) The taxable equivalent yield on the corporate bond is % (Round to three decimal places.) Tho taxable equivalent yield on the Troonry bord in % (Round to the decimal places) Which one of the bords should sho buy? (Select the best choice below) O A. Janice should buy the Treasury bond that has a yield of 12.257%, its gher taxable equivalent yield means it has the highest after-tax return O B. Janice should buy the corporate bond that has a yold of 12.863%, its higher taxable equivalent yield means it has the highest after tax retum OC. Janice should buy tho AA rated in-state bond that has a yold of 9.745%, itu higher taxable equivalent yold means it has the highest after tax regum OD. Janice should buy the AA rated out-of-state bond that has a yield of 10.1939, its higher taxable equivalent yield means it has the highestafer-tax return b. Rank the d bonds (from best to worst) in terms of their taxable equivalent yields (Select the best choice below) , Best In state municipal , to-state municipal Out-of-state municipal Out-of-state municipal Treasury bond Corporate bond Worst Corporate bond Worst Treasury bond OC Best Out-of-state municipal OD. Best In-state municipal In-state municipal Treasury bond Corporate bond Out-of-state municipal Worst Treasury bond Worst Corporate bond

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