1. Find the equivalent taxable bond yield of the municipal bond that pays a yield of 4% if your marginal tax rate is:

(Show details of calculations to support your answers, if needed you may use this formula in your calculation):

	rtax exempt = rtaxable x (1 Tax rate)

1. 0%

2. 10%

3. 20%

4. 30%

2.

Suppose that you bought 100 shares of Apple at $500. You sold the stocks at $600 one year later. In the meantime, you received $10 cash dividend per share from Apple. (Note: Ignore taxes in your calculations.)

1. (2) What is the dividend yield of your investment?

2. (2) What is the capital gain of your investment?

3. (1) What is the total return to your investment?