1. Buying Stock with Commission At your discount brokerage firm, it costs $10.70 per stock trade. How much money do you need to buy 100 shares of Ralph Lauren (RL), which trades at $85.28?
2. GE corporate bond pays 9.25% yield to maturity (YTM) How much yield would a MA municipal bond have to pay to be equivalent to the GE bond on an after-tax basis if you have a 25% personal income tax rate?
3. A corporate bond pays 8.5% yield to maturity (YTM, the specific name for the return rate of bonds You as an investor, are in the 27% personal tax rate bracket. What is your after- tax yield (return rate) on this bond?