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Claire, a resident of Nova Scotia, has $10,000 to invest for one year. She has found two alter- natives: a bond that will provide interest

Claire, a resident of Nova Scotia, has $10,000 to invest for one year. She has found two alter- natives: a bond that will provide interest income at year-end of $500, and a common stock whose price is $50 and is expected to increase by $2.50. Ignoring risk and other factors, how much money will Claire have after taxes for each investment? Use Tables 2-8 and 2-9, and assume that Claire has taxable income of $65,000.

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