1. If a homeowner makes annual payments for 30 years, to pay off a loan of $150,000 at an interest rate of 5.75% per year, what total amount of interest will be paid over the life of the loan?
2. A municipal and a corporate bond of equal risk, liquidity and maturity yield 6% and 10% respectively. For which values of marginal tax rates would you prefer to buy the municipal bond?
3. Describe the possible tax implications when selling a fixed asset?