Answer:
4% (exactly 4.4%)
Explanation:
A taxable bond is a debt security whose return to the investor is subject to taxes at the local, state or federal level, or some combination thereof. An investor trying to decide whether to invest in a taxable bond or tax-exempt bond should consider what s/he will have left in income after taxes are taken.
Step 1:
Find the reciprocal of your tax rate,
(1-22%) = 1-0.22 = 0.78
Step two:
Divide this into the yield on the tax-free bond to find out the tax-equivalent yield.
3.5/0.78 = 4.4 ~ 4%
Answer: D. $24,560
Explanation:
The contributions to charity and the clothing to Goodwill can be considered charitable deductions but the goodwill clothing must be value at second-hand value.
= Donation to WWF + Salvation Army + Breast Cancer research + Goodwill
= 3,500 + 10,000 + 11,000 + 60
= $24,560
Answer: D is the correct answer
Explanation:
Answer:cost of investment/annual net cash flow
Explanation:
