Answer:
2.7%
Explanation:
Calculation for the municipal bond yield
Municipal bond yield=(1-.4)*0.045
Municipal bond yield=.6*.045
Municipal bond yield=0.027*100
Municipal bond yield=2.7%
Therefore based on the information given You would be indifferent between buying a thirty-year treasury bond and buying a thirty- year municipal bond issued within your state if the municipal bond has a yield of 2.7%