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In-s [12.5K]
3 years ago
14

First, think about the way in which interest on municipal bonds is treated from a federal income tax point view. In this light,

approximately what interest rate would a taxable bond have to offer to make its yield equivalent to that of a municipal bond that has an interest rate of 3.5% if a person in a 22% tax bracket?
Business
1 answer:
spin [16.1K]3 years ago
7 0

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%

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Recession, inflation, and high interest rates are economic events that are best characterized as being a. systematic risk factor
Shalnov [3]

Answer:

The correct answer is letter "B": among the factors that are responsible for market risk.

Explanation:

Market risk is the threat of an investment value falling due to factors that affect all market-wide investments. Investors always take on a certain level of risk. There is always the risk that their investments do not achieve expected returns. The risk falls into two categories: <em>Systematic risk </em>and <em>Unsystematic Risk. </em>

<em>Interest rates fluctuations, recession, and inflation are considered market risks.</em>

3 0
2 years ago
In the actual economy, goods and services are purchased byA. households, but not firms or the government. B. households and the
GenaCL600 [577]

Answer:

C. households, firms, and the government.

Explanation:

In the actual economy, goods and services are purchased by households, firms, and the government.

7 0
3 years ago
At market equilibrium, Group of answer choices quantity demanded equals quantity supplied. surpluses are greater than shortages.
Tom [10]

Answer:

quantity demanded equals quantity supplied

Explanation:

The market equilibrium is the price at which the quantity demanded and the quantity supplied cross each other. The intersection could be made by supply and demand curves.

Therefore, there is a direct relationship between the price and the quantity supplied, while the price and quantity demanded have an inverse relationship.

When the quantity demanded and the quantity supplied are intersect at the price so we called market equilibrium

6 0
3 years ago
During sales at her accessories store, Manila likes to display large signs in the store window to attract customers. She also pu
Bess [88]

Answer: The use of promotional signage

Explanation:

A promotional signage is a method of advertisement where special offers are displayed at strategic points by a business to the public to attract customers to patronize the business. Manila in her is making use of promotional signage to draw the attention of potential buyers to her store.

4 0
3 years ago
Read 2 more answers
A company purchased a delivery van for $23,000 with a salvage value of $3,000 on September 1, Year 1. It has an estimated useful
kaheart [24]

Answer:

<em>It will recognize 1,333.33 Depreciaton expense</em>

<em>for December 31th, year 1</em>

Explanation:

The straight-line Method is simply and easy to understand, It distribute the depreciation equally between years. So that implies that the formula should be:

\frac{Adquisition \: Value- \: Salvage \: Value}{useful \: life}= Depreciation \: coplete \: year

(23,000 - 3,000) / 5 = 20,000 / 5 = 4,000

Now we have to calculate the proportion

4,000 x 4/12 time in company's possesion = 1,333.33 depreciation

September + October + Novemember + December = 4 months

3 0
3 years ago
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