1.

What is the marginal tax rate for a corporation with $60,000 of taxable income and an average tax rate of 18% if the next-lowest marginal tax rate of 15% covers taxable incomes up to $40,000?

17%

16%

24%

33%

2.Five years ago, Rock Steady Corp issued a semiannual coupon bond with seven years until maturity. This bond was originally issued at par with a $1,000 face value.

The coupon rate on the bond is 8%. Today, the yield-to-maturity (YTM) is 10%.

What was yield to maturity of this bond when it was issued?

7.5%

8%

9%

8.5%