1. A bond investor is considering two 10 year maturity bonds both rated AAA: the municipal bond is yielding 1.79% and the corporate bond is yielding 2.84%. At what marginal tax rate would the bond investor be indifferent between the two bonds? Enter your answer rounded off to two decimal points.

2.You purchased 100 shares of Amazon common stock on margin at $339.04 per share. Assume the initial margin is 50% and themaintenance margin is 30%. One year later, the stock price closes at $512.89. If the brokers call loan rate is 2.00%, what is your return on equity? Note that Amazon pays no dividends.Enter your answer rounded to two decimal places.

3. You want to form a priceweighted technology stock index using Apple, Google, and Microsoft. Apples adjusted closing price for 2015 is $112.75 and for2014 is $100.78;Googles adjusted closing price for 2015 is $647.82 and for 2014 is $582.36; Microsofts adjusted closing price for 2015 is $43.52 and for2014 is $44.25. What is the annual return for your priceweighted technology stock index for 2015? Enter your answer rounded to two decimal places.

4.Using the price data for Apple, Google, and Microsoft from problem 2, you now want to form a valueweighted technology stock index. The additionalinformation that you gathered is their market values at the end of 2014 or beginning of 2015; in billions of dollars, Apples market value is $574.72 B,Googles market value is $399.23 B, and Microsofts market value is $353.91 B. What is the annual return for your valueweighted technology stockindex for 2015? Enter your answer rounded to two decimal places.

5. You purchased 100 shares of Berkshire Hathaway Class B common stock on margin at $111.22 per share. Assume the initial margin is 50% and themaintenance margin is 30%. Below what stock price level would you get a margin call? Assume the stock pays no dividend; ignore interest on margin.Enter your answer rounded to two decimal places.