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Dana intends to invest $ 4 2 , 0 0 0 in either a Treasury bond or a corporate bond. The Treasury bond yields 5

Dana intends to invest $42,000 in either a Treasury bond or a corporate bond. The Treasury bond yields 5 percent before tax and the
corporate bond yields 6 percent before tax.
Required:
a-1. Assuming Dana's federal marginal rate is 24 percent and her marginal state rate is 5 percent, which of the two options should she
choose? Assume that Dana itemizes deductions.
a-2. How much interest after-tax would Dana earn by investing in the corporate bond?
Note: Do not round intermediate calculations and round your final answer to the nearest whole dollar amount.
b-1. If she were to move to another state where her marginal state rate would be 10 percent, which of the two options should she
choose? Assume that Dana itemizes deductions.
b-2. How much interest after-tax would Dana earn by investing in the corporate bond as per requirement b-1?
Note: Do not round intermediate calculations and round your final answer to the nearest whole dollar amount.
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