1. Assume that Marsha is indifferent between investing in a city of Destin bond that pays 3.5% interest and a corporate bond that pays 5% interest. What is Marsha's marginal tax rate?

2. Assume that Javier is indifferent between investing in a city of El Paso bond that pays 3.2% interest and a corporate bond that pays 4.7% interest. What is Javier's marginal tax rate?

3. Assume that Lucas' marginal tax rate is 20% and his tax rate on dividends is 10%. If a dividend-paying stock (with no growth potential) pays an 9.00% dividend yield, what interest rate would a municipal bond have to offer for Lucas to be indifferent between the two investments from a cash-flow perspective?

4. Assume that Shavonne's marginal tax rate is 50% and her tax rate on dividends is 20%. If a corporate bond pays 9.4% interest, what dividend yield would a dividend-paying stock (with no growth potential) have to offer for Shavonne to be indifferent between the two investments from a cash-flow perspective

5. Assume that Jose is indifferent between investing in a corporate bond that pays 10% interest and a stock with no growth potential that pays an 10.1% dividend yield. Assume that the tax rate on dividends is 15%. What is Jose's marginal tax rate?