1. An estate tax marital deduction is available in all of the following situations, except:
a. The decedent spouse’s share of tenancy-in-common property is bequeathed to the surviving spouse through the will.
b. A husband received 60% of his wife’s estate through intestacy therefore a marital deduction is available for 60% of the property transferred to the husband.
c. A husband’s estate transferred $500,000 to his wife through a valid nuptial agreement.
d. A testamentary trust was created by will that gave the surviving spouse income for life with a limited power of appointment over trust corpus. No QTIP election was made.
2. What is the after-tax yield of an AA Corporate bond with a quote yield of 8.00% to an investor with a 25% tax bracket? Be sure you answer has the correct number of digits.?
Default risk is likely to be highest for
A) short-term Treasury securities.
B) AAA corporate securities.
C) long-term Treasury securities.
D) BBB corporate securities.