1. If a taxable bond yields 6.3% and a municipal bond of comparable risk and maturity yields 4.6%, at what tax rate is the investor indifferent to either bond? (Report answer in percentage terms and round to 2 decimal places. Do not round intermediate calculations).
2. You purchase 34 call option contracts on B&G stock with a strike price of $20 and an option premium of $1.13. What is your net gain or loss on this investment if the price of B&G is $19.76 on the option expiration date? (Round answer to 2 decimal places. Do not round intermediate calculations).