Assume you are a New York Resident in tax-year 2019, you are in the 24% tax bracket at the Federal level and in the 6.6% tax bracket for your New York state income tax.

Assume a money market fund that invests in commercial paper, yields 1.75%.

1. What yield would make you indifferent between this fund and a money market fund that invests exclusively in treasury securities?

2. What yield would make you indifferent between the fund investing in commercial paper and a money market fund that invests exclusively in securities issued by state and local governments in New York?