Question $2$

A tax$-$free municipal bond provides a yield of $3\mathrm{.}2\%.$ What is the equivalent taxable yield on

the bond given a $35\%$ tax bracket?

$2\%$ equivalent taxable yield $2\mathrm{.}5\%$

$2\mathrm{.}5\%$ equivalent taxable yield $3\mathrm{.}0\%$

$3\mathrm{.}0\%$ equivalent taxable yield $3\mathrm{.}5\%$

$3\mathrm{.}5\%$ equivalent taxable yield

Question $3$

An instrument which gives the holder the right to buy an asset for a specified exercise price

on or before a specified expiration date is:

A call option

A common stock

A put option

A preferred stock