Income from ________ is exempt from federal income taxes? A. government bond funds B. money market...
Income from ________ is exempt from federal income taxes?
A.
government bond funds
B.
money market funds
C.
REITs
D.
municipal bond funds
Homework Answers
Municipal bond funds are exempt from federal tax and may also be exempt from state taxes
Thus the answer is d. municipal bond funds
Add Answer to:
Income from ________ is exempt from federal income taxes?
A.
government bond funds
B.
money market...
Municipal bonds are tax-exempt from the Federal income tax. Assume a new 10-year municipal bond has...
Municipal bonds are tax-exempt from the Federal income tax. Assume a new 10-year municipal bond has a 3%/year coupon rate. What would be the required coupon rate on a taxable bond for an investor to be indifferent in holding a taxable bond compared to the 3% tax-free bond? Assume the investor is in a 40% marginal income tax bracket. Both bonds have the same credit quality. 5.0% 1.8% 1.2% 7.5% 3.0%
Why does the Federal Government exclude from gross income interest on municipal bond interest?
Why does the Federal Government exclude from gross income interest on municipal bond interest?
What would happen to the risk premiums of municipal bonds if the federal government guarantees today...
What would happen to the risk premiums of municipal bonds if the federal government guarantees today that it will pay creditors if municipal governments default on their payments O A. Risk premium on municipal bonds will decrease O B. Risk premium on municipal bonds will stay the same. OC. Risk premium on municipal bonds will increase. OD. There is not enough information to tell. Do you think that it will then make sense for municipal bonds to be exempt from...
The Federal Deposit Insurance Corporation insures A. the federal funds market. B. the deposits held in...
The Federal Deposit Insurance Corporation insures A. the federal funds market. B. the deposits held in the Fed. C. banks against lawsuits. D. the deposits held in member banks. 2) In a barter system, there are A. financial institutions to facilitate all exchanges. B. money and goods exchanged for each other. C. goods traded directly for other goods and services. D. many different units of money. 3) The price of bonds and the interest rate are A. related, but we...
Not-for-profit businesses are generally exempt from local property taxes as well as state and federal income...
Not-for-profit businesses are generally exempt from local property taxes as well as state and federal income taxes. Should policymakers mandate that not-for-profit healthcare organizations provide indigent (charity care) services equal to the tax benefit received?
5. Federal Bonds offer more tax advantages than municipal bonds because interest income eamed on Federal...
5. Federal Bonds offer more tax advantages than municipal bonds because interest income eamed on Federal Bonds are exempt from state and local taxes a True b. False A Chattel Mortgage Bond is secured by personal property a True b. False
4. Money market funds invest mostly in: a. stocks b. long-term bonds c. short-term fixed income...
4. Money market funds invest mostly in: a. stocks b. long-term bonds c. short-term fixed income securities d. short-term stocks 5. Protective covenants associated with bond agreements: a. are designed to protect the bondholder b. are designed to protect the bond issuer c. are generally disclosed at bond maturity d. are not required but increase the risk of the bond issue 6. Mutual funds composed of stocks that have potential for very high growth, but may also be unproven, are...
If the federal government taxes gasoline but returns the entire money back to citizens, are citiz...
If the federal government taxes gasoline but returns the entire money back to citizens, are citizens better off, worse off, are unaffected by this policy? What could be the possible motivation for the government? a. b. For simplicity, assume that all citizens are identical in their income and preferences. Draw graph/s with gasoline on the X-axis and composite good on the Y-axis. Make sure the graph is large, neat and clear and easy to read. Explain your answer in terms...
Assume that the market for loanble funds is in equilibrium and that the federal government budget...
Assume that the market for loanble funds is in equilibrium and that the federal government budget is balanced. Now assume that the federal government begins to run a budget deficit (G > T). Does this shift the supply or demand for loanable funds? Why? What happens to the real interest rate? What happens to the quantity of loanable funds? What is the resulting impact on investment in the economy? What is this called?
How is the market for money funds? What are some challenges for the money funds’ returns?...
How is the market for money funds? What are some challenges for the money funds’ returns? How is the market for bonds? Some government bond yields has turned negative in Europe and Asia in the past. Which countries are/were with negative yields? Why? What does/did this indicate?
Municipal bonds are tax-exempt from the Federal income tax. Assume a new 10-year municipal bond has a 3%/year coupon rate. What would be the required coupon rate on a taxable bond for an investor to be indifferent in holding a taxable bond compared to the 3% tax-free bond? Assume the investor is in a 40% marginal income tax bracket. Both bonds have the same credit quality. 5.0% 1.8% 1.2% 7.5% 3.0%
What would happen to the risk premiums of municipal bonds if the federal government guarantees today that it will pay creditors if municipal governments default on their payments O A. Risk premium on municipal bonds will decrease O B. Risk premium on municipal bonds will stay the same. OC. Risk premium on municipal bonds will increase. OD. There is not enough information to tell. Do you think that it will then make sense for municipal bonds to be exempt from...
5. Federal Bonds offer more tax advantages than municipal bonds because interest income eamed on Federal Bonds are exempt from state and local taxes a True b. False A Chattel Mortgage Bond is secured by personal property a True b. False
4. Money market funds invest mostly in: a. stocks b. long-term bonds c. short-term fixed income securities d. short-term stocks 5. Protective covenants associated with bond agreements: a. are designed to protect the bondholder b. are designed to protect the bond issuer c. are generally disclosed at bond maturity d. are not required but increase the risk of the bond issue 6. Mutual funds composed of stocks that have potential for very high growth, but may also be unproven, are...
If the federal government taxes gasoline but returns the entire money back to citizens, are citizens better off, worse off, are unaffected by this policy? What could be the possible motivation for the government? a. b. For simplicity, assume that all citizens are identical in their income and preferences. Draw graph/s with gasoline on the X-axis and composite good on the Y-axis. Make sure the graph is large, neat and clear and easy to read. Explain your answer in terms...
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