1) A municipal bond has a yield to maturity of 5%. If an investor is in the 30% marginal tax bracket, what is the interest rate on a corporate bond that will provide the save after-tax return? 7.14% 3.5% 16.67% 1.5%

2 )A 10 year bond has a par value of $1,000, a 9% coupon, a 7.5% yield to maturity, and a price of $1,100. What is the bonds current yield?

		8.18%.
		9.00%.
		6.81%.
		9.90%.

3 )According to the Gordon growth model, what is an investor's valuation of a stock whose last dividend was $1.00 per year if dividends are expected to grow at a constant rate of 10 percent over a long period of time and the investor's required return is 16 percent?

		$18.33
		$16.67
		$4.23
		none of the above