Federal Tax rate - 35%
State Tax rate - 7%
Effective Tax rate = 42%
0.035/(1-0.42) = 6.03%.
Given a federal tax rate = 30 % and a state-tax rate = 7% then for...
Jennifer is in the 25% federal income tax bracket and the 3% state income tax bracket. If Jennifer purchases a municipal bond yielding 4.25%, what is her after-tax equivalent yield if the bond income is exempt from both federal and state taxes? 5.84% 5% 7.55% 8. A bond has a YTM of 6.5%, a modified duration of 16.9 years, a duration of 18 years and a 30 year maturity. By what percentage will the bond's price change if market interest...
QUESTION 23 Buffy, who lives in NY City, is in the 30% federal tax bracket and 6% state income tax bracket. Which of the following bonds that she is considering purchasing has the highest after-tax yield: (1) Treasury bond paying 4.7%. (2) Corporate bond paying 4.9%. (3) Louisiana Municipal bond paying 3.5%. O a. 1 only. b. 2 only. O c. 3 only. d. 1 and 3 are the same and have the highest after-tax yield. QUESTION 24 Todd owns...
25. Your client's federal marginal income tax rate is 35%, and his state marginal income tax rate is 5%. He is considering investing in a municipal bond issued by his local municipality that will yield him 6%. Calculate the taxable equivalent yield of this bond. A. 3.60% B. 8.40% C. 9.23% D. 10.00%
Beth, who lives in NY City, is in the 24% federal tax bracket and 6% state income tax bracket. Which of the following bonds that she is considering purchasing has the highest after-tax yield? 1) Treasury bond paying 5.4% 2) Corporate bond paying 5.5% 3) Florida Municipal bond paying 4.2% A. 1 only. B. 2 only. C. 3 only. D. 1 and 2 are the same and the highest.
If the federal income tax rate is 21% and the state tax rate is 7% (and state taxes are deductible from federal taxes), what is the effective income tax rate? Choose the correct answer below. O A. The effective income tax rate is 21% O B. The effective income tax rate is 26.5%. OC. The effective income tax rate is 24.5%. OD. The effective income tax rate is 28%
What is the combined tax rate if the federal rate is 15% and the state rate is 7%? 22% 21% 23% 15%
20. Assume you live in a state with a state income tax. The current Republican tax bill will get rid of the tax deductibility of State and Local Taxes (SALT) when filing your Federal Income Taxes. This means you will no longer be able to deduct amount of the state income tax you pay when you file your federal income taxes. If you invest in a Treasury Bond that pays an annual coupon interest rate of 4% and you are...
5) If you have a state tax rate of 7%, and a federal tax rate of 33%, what is your effective total tax rate? Also, if you want to achieve at least a 10% rate of return after taxes, what value should you use for your before-tax rate of return?
Below is how far I have gotten: Benefit of federal tax rate: ? 2. Ms. Drake is deciding between investing $50,000 in two different municipal bonds, both of which have the same risk. The first option is state of Colorado bonds paying interest of 3.35%. The second option is state of Texas bonds paying interest of 3.50%. All income from either bond investment is nontaxable at the federal level. Because Ms. Drake is a resident of Colorado, any income from...
the wendt corporation reported $30 million of taxable income. its federal tax rate was 21%( ignore any possible state corporate taxes). a what is the companys federal income tax bill for the year b) assume the firm receives an additional $2 million of interest income from some bond it owns. what is the additional tax on this interest income. c) now assume that wendt does not receive the interest but does receive an additional $ 2 million as dividends on...