19.

A PPN is issued with a NAV of $15.00, and is sold before maturity at $19.00 two years later. Calculate the amount of tax per unit that an investor in a 35% marginal tax bracket will owe from selling the PPN.

Select one:

a. $4.00

b. $1.40

c. $2.60

d. $0.70

20.

An investor has deferred annuities in a registered account, what component of his withdrawal is taxable?

Select one:

a. only the principal portion

b. only the interest portion

c. neither principal nor interest payment is taxable.

d. both principal and interest portion