Question

Drag each tile to the correct box. Each tile shows an investor's tax bracket along with the tax-free yield of a bond the investor purchased. Use the formula to determine the taxable equivalent yield of each investment, and then order the investments from least to greatest return. tax-free yield taxable equivalent yield = 100 – tax bracket tax bracket: 24% tax-free yield: 5% tax bracket: 12% tax-free yield: 5% tax bracket: 22% tax-free yield: 3% tax bracket: 24% tax-free yield: 4% tax bracket: 35% tax-free yield: 3% < < < <​

Answer 1

The tax bracket and tax-free yield will be (18%, 3%) < (32%, 3%) < (32% , 4%) < (22% , 5%) < (24% , 6%) .

Taxable equivalent yield based problem:

The taxable equivalent yield will be:

= Tax-free yield / (100 - Tax bracket)

Taxable equivalent yield =  3 / (100 - 18) = 0.03659

Taxable equivalent yield = 6 / (100 - 24) = 0.07895

Taxable equivalent yield = 3 / (100 - 32) = 0.04412

Taxable equivalent yield = 5 / (100 - 22) = 0.06410

Taxable equivalent yield = 4 / (100 - 32) = 0.05882

Find out more information about Tax on:

brainly.com/question/22852392

#SPJ1