1)Leonardo, who is married but files separately, earns $80,000 of taxable income. He also has $15,000 in city of Tulsa bonds. His wife, Theresa, earns $50,000 of taxable income.

How much money would Leonarda

and Theresa save if they file jointly instead of separately for 2019? (Use tax

rate schedule.)

A) Nothing

B) $103.50

C) $309.75

D) $5,932.50

E) None of the choices are

correct.

2)Assume that Bill's marginal tax rate is 32 percent. If corporate bonds pay 8 percent interest, what interest rate would a municipal bond have to offer for Bill to be indifferent between the two bonds?

A) 32.00 percent.

B) 10.40 percent.

C) 8.00 percent.

D) 7.00 percent.

E) None of the choices are

correct.

3)Assume that Lucas's marginal tax rate is 32 percent and his tax rate on dividends is 15 percent. If a dividend-paying stock (with no growth potential) pays an 8 percent 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?

A) 32.00 percent

B) 15.00 percent.

C) 8.00 percent.

D) 6.80 percent.

E) None of the choices are correct.