1. An investor recently purchased a corporate bond which yields 9%. The investor is in the 34% combined federal and state tax bracket. What is the bond's after-tax yield? Round your answer to two decimal places.

2. Corporate bonds issued by Johnson Corporation currently yield 11%. Municipal bonds of equal risk currently yield 4%. At what tax rate would an investor be indifferent between these two bonds? Round your answer to two decimal places.

3. Molteni Motors Inc. recently reported $3.25 million of net income. Its EBIT was $5.5 million, and its tax rate was 35%. What was its interest expense? Round your answer to the nearest dollar. Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000.

4. Talbot Enterprises recently reported an EBITDA of $7.5 million and net income of $1.875 million. It had $2.85 million of interest expense, and its corporate tax rate was 40%. What was its charge for depreciation and amortization? Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000.