Hugh has the choice between investing in a city of heflin bond at 3.60 percent or investing in a surething inc. bond at 5.25 percent. assuming that both bonds have the same nontax characteristics and that hugh has a 40 percent marginal tax rate, what interest rate does surething inc. need to offer to make hugh indifferent between investing in the two bonds?

Which of the following is true concerning the 5/5 lapse rule? a) the 5/5 lapse rule deems that a taxable gift has been made where a power to withdraw in excess of $5,000 or five percent of the trust assets is lapsed by the powerholder. b) the 5/5 lapse rule only comes into play with a single beneficiary trust. c) amounts that lapse under the 5/5 lapse rule qualify for the annual exclusion. d) gifts over the 5/5 lapse rule do not have to be disclosed on a gift tax return.