Congress's Inability to Tax Prevented It from Maintaining an __________

question 51

Short Answer

Congress's inability to tax prevented it from maintaining an __________ and a __________,examples of the limitations of the Articles of Confederation.

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Definitions:

Coupon

The interest rate disbursed annually on a bond, indicated as a percent of its face value.

Bond Price

Bond price is the present value of a bond's future interest payments and its redemption value at maturity, which fluctuates with interest rates and the bond's credit rating.

Tax Exempt Equivalent Yield

A calculation that determines the return needed on a taxable bond to make it equivalent to the yield on a tax-exempt bond, factoring in the investor's tax rate.

Marginal Tax Rate

The amount of tax paid on an additional dollar of income.