Please show work with a little description of how you did it as i keep coming up with the wrong answer.Suppose? that, holding yield? constant, investors are indifferent as to whether they hold bonds issued by the federal government or bonds issued by state and local governments? (that is, they consider the bonds the same with respect to default? risk, information? costs, and? liquidity). Suppose that state governments have issued perpetuities? (or consoles) with ?$85 coupons and that the federal government has also issued perpetuities with ?$85 coupons. If the state and federal perpetuities both have? after-tax yields of 6?%, what are their? pre-tax yields?? (Assume that the relevant federal income tax rate is 33.91?%.)The? pre-tax yield on the state perpetuity will be _____?(Round your response to two decimal? places.) right answer is 6%The? pre-tax yield on the federal perpetuity will be____?(Round your response to two decimal? places.)right answer is 9.08%BusinessFinanceFINC 610
