1) An investor purchases one municipal and one corporate bond that pay rates of return of 7.5% and 10.3%, respectively. If the investor is in the 24% marginal tax bracket, what will be his or her after-tax rates of return on the municipal and corporate bonds?

2). Liquidity in financial terms is:

A. a feature of money only

B. the best measure of risk of a financial asset

C. the ease with which an asset can be sold at the published market price

D. to lower the rate of return for an asset