In order for you to be indifferent between the after tax returns on a corporate bond paying 8.5% and a tax-exempt municipal bond paying 6.12%, what would your tax bracket need to be?
A: 33%
B: 72%
C: 15%
D: 28%
E: Cannot tell from the information given
A: 33%
B: 72%
C: 15%
D: 28%
E: Cannot tell from the information given
举一反三
- A municipal bond carries a coupon of 6.75 percent and is traded at par. To a taxpayer in the 28 percent tax bracket, this bond provides an equivalent taxable yield of:（） A: 8.53%. B: 7.88%. C: 9.38%.
- At the National Tax __________, a number of speakers mentioned the difference between avoiding tax and __________. As they explained, avoiding tax is an act of doing everything possible within __________ the Tax Law in order to reduce your tax burden. And evading tax is the act of illegally paying less than (or not paying at all) the full amount of tax required by law. (evade, confine, convention)
- The tax-collector sent a letter to the artist in order to （）. A: send him a new tax form B: return the money overpaid C: remind him of paying the tax D: explain the rules of tax paying
- The equivalent variation in income from a tax is the amount of extra income that a consumer would need in order to be as well off after the tax is imposed as he was originally.
- A 6% annual coupon paying bond has two years remaining to maturity and is priced at par. Assuming a 40% tax rate, the after-tax yield for this bond is closest to:（） A: 2.4%. B: 3.6%. C: 4.8%.