1. James purchased ten $1,000 corporate bonds issued by Kohl's. The annual interest rate for the bonds is 4%. a. What is the annual interest amount for each Kohl's bond? b. If the bonds have a current bond price quotation of 106 , what is the current price of the bond? c. Given the above information, what is the current yield for a Kohl's bond? 2. Charlie is 55 years old and wants to diversify her investment portfolio. She must decide if she should invest in tax-free municipal bonds or corporate bonds. The tax-free bonds are highly rated and pay 3.25%. The corporate bonds are more speculative and pay 5%. a. If Charlie is in the 32% tax bracket, what is the taxable equivalent yield for the municipal bond? b. If you were Charlie, would you choose the municipal bonds or corporate bonds? Justify your