You purchased 10,000 shares of Y stock at $55 per share on margin. Assume that initial margin is 50% and margin interest rate is 7%. If you sell the shares a year later for $67 per share, calculate your return using margin (1 point):

50.0%

36.6%

21.8%

43.6%

2. In order for you to be indifferent between the after-tax returns on a corporate bond paying 8.5% and a tax-exempt municipal bond paying 6.12%, what would your tax bracket need to be? (1 point)

33%

24%

28%

15%