Ignacio is in possession of a 6% municipal bond. If he is in the 24% tax bracket, then what is the taxable equivalent yield? Group of answer choices 5.2% 7.9% 8.1% 8.4%
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Ignacio is in possession of a 6% municipal bond. If he is in the 24% tax bracket, then what is the taxable equivalent yield? Group of answer choices 5.2% 7.9% 8.1% 8.4%
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- Your client's federal marginal tax rate is 36%, and the state marginal rate is 7%. The client does not itemize deductions on his federal tax return and is considering investing in a municipal bond issued in his state of residence which yields 5%. What is his taxable equivalent yield? 3.20% 4.65% 5.38% 7.81% 8.77%A tax credit of $100 for a person in a 24 percent tax bracket would reduce a person's taxes owed by: Group of answer choices $10. $28. $76. $100. $24.Assume that John's marginal tax rate is 37 percent. If a city of Austin bond pays 6.5 percent interest, what interest rate would a corporate bond have to offer for John to be indifferent between the two bonds? Question 4 Marc, & married taxpayer, earns 5640,000 in taxable income and $8,300 in interest from an investment in city of Birmingham bonds. Using the U.S. tax rate schedule for year 2022, what is his current marginal tax rate? (Use tax rate schedule.)
- An investor purchases one municipal and one corporate bond that pay rates of retum of 5.00% and6.40% respectively If the investor is in the 15% tax bracket, his after tax rates of return on the municipal and corporate bonds would be respectivelyAn investor purchases one municipal and one corporate bond that pay rates of return of 6% and 8%, respectively. If the investor is in the 24% marginal tax bracket, his or her after-tax rates of return on the municipal and corporate bonds would be ________ and ______, respectively. A) 6%; 8% B) 4.5%; 6% C) 4.5%; 8% D) 6%; 6.08%Please provide justification4) An investor purchases one municipal and one corporate bond that pay rates of return of 7.5% and 10.3%, respectively. If the investor is in the 24% marginal tax bracket, what will be his or her after-tax rates of return on the municipal and corporate bonds?
- You purchase a tax-free municipal bond paying an annual rate of 6 percent.Find the before-tax rate if you are in thea. 15-percent tax bracket.b. 28-percent tax bracket.c. 36-percent tax bracket.An investor purchases one municipal and one corporate bond that pay rates of return of 7.2% and 9.1%, respectively. If the investor is in the 12% marginal tax bracket, his or her after-tax rates of return on the municipal and corporate bonds would be ________ and ______, respectively. A) 7.2%; 9.1% B) 7.2%; 8.008% C) 6.12%; 7.735% D) 8.471%; 9.1% Provide an accurate answer with justification.An investor purchases one municipal and one corporate bond that pay rates of return of 7.2% and 9.1%, respectively. If the investor is in the 15% marginal tax bracket, his or her after-tax rates of return on the municipal and corporate bonds would be ________ and ______, respectively. A. 6.12%;7.735% B. 7.2%;7.735% C. 7.2%;9.1% D. 8.471%;9.1%
- Assume you are in the 32 percent tax bracket and purchase a 3.26 percent, tax-exempt municipal bond. Calculate the taxable equivalent yield for this investment using the formula: Taxable equivalent yield = Tax-exempt return + (1 - Your tax rate) ÷ Note: Enter your answer as a percent rounded to 2 decimal places. Taxable equivalent yield %An investor is trying to decide between a muni paying 6.20 percent or an equivalent taxable corporate paying 8.25 percent. What is the minimum marginal tax rate the investor must have to consider buying the municipal bond? Group of answer choices 20.0 percent 66.7 percent 80.0 percent 25.0 percent 75.0 percentYou purchase a tax-free municipal bond paying an annual rate of 6 percent. Find the before-tax rate if you are in the 15-percent tax bracket. 28-percent tax bracket. 36-percent tax bracket.