An investor is indifferent between a tax-exempt security offering a yield of 4% and a taxable security of 6%. What tax rate does the investor pay, assuming that this investor is rational and well-informed?

	a.	66.67%
	b.	30.00%
	c.	25.00%
	d.	33.33%

1 points

QUESTION 18

A money market security with a face value of $10,000 sells at a discount of $48. If the security matures in 30 days, what is the discount rate?

	a.	5.95%
	b.	2.75%
	c.	5.76%
	d.	4.80%

1 points

QUESTION 19

Which of the following securities is most liquid and has the least default risk?

	a.	Treasury bill
	b.	commercial paper
	c.	3-month CD
	d.	1-month CD

1 points