You Have a Marginal Tax Rate of 24% and an Average

question 85

Multiple Choice

You have a marginal tax rate of 24% and an average tax rate of 19%. Municipal bonds in your area are yielding 3.90%. What is your equivalent taxable yield?

• A)5.13%
• B)5.23%
• C)5.34%
• D)5.48%
• E)5.89%

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Definitions:

Voluntarily Entered

A decision or action taken freely and without coercion by an individual or entity.

Per Se

A Latin term often used in law to indicate something that is intrinsically or inherently the case, without needing further proof or qualification.

Foreseeable Misuse

A legal concept referring to the predictable and incorrect use of a product that manufacturers should anticipate and guard against.

Obvious Risks

Hazards or dangers that are clear and apparent, which a reasonable person would recognize.