QUESTION 1 Matt recently deposited $30,000 in a savings account paying a guaranteed interest rate of 4 percent for the next 10 years. If Matt expects his marginal tax rate to be 22 percent for the next 10 years, how much interest will he eam after-tax after the seventh year of his investment if he withdraws enough cash every year to pay the tax on the interest he earns? QUESTION 2 Dana intends to invest $20,000 in either a Treasury bond or a corporate bond. The Treasury bond yields 5 percent before tax and the corporate bond yields 6 percent before tax. Dana's federal marginal rate is 25 percent and her marginal state rate is 5 percent. What is the amount by which the yield on the corporate bond exceeds the yield on t the Treasury bond. Assume that Dana itemizes her deductions and that any state income tax would be fully deductible.