Jim has a house payment of $2,000 per month of which $1,700 is deductible interest and real estate taxes with the remaining $300 representing a repayment of the principal balance of the note. Jim's marginal tax rate is 30%. What is Jim's after-tax cost of his house payment?

A common reason for calling in a callable bond before its maturity date is that _____.

a. market interest rates increased b. market interest rates decreased c. the stated interest rate on the bond decreased d. the stated interest rate on the bond increased

Risk neutral probabilities are also known as all of the following EXCEPT:

A) contingent probabilities. B) state-contingent prices. C) martingale prices. D) state prices.