Curtis Invests $500,000 in a City of Athens Bond That

question 69

Multiple Choice

Curtis invests $500,000 in a city of Athens bond that pays 7.25 percent interest. Alternatively, Curtis could have invested the $500,000 in a bond recently issued by Initech, Incorporated that pays 7.75 percent interest with similar risk as the city of Athens bond. Assume that Curtis's marginal tax rate is 24 percent. How much explicit tax would Curtis incur on interest earned on the Initech, Incorporated bond?

• A)$29,850.00
• B)$9,300.00
• C)$8,700.00
• D)$26,850.00
• E)None of the choices are correct

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Definitions:

Unwanted Responses

Behavior or reactions that are involuntary, undesirable, or inappropriate in a given context.

Free Association

A psychoanalytic technique in which patients are encouraged to convey any thoughts that come to mind without censorship to uncover unconscious thoughts and feelings.

Unconditional Positive Regard

An attitude of total acceptance and support toward another person, regardless of what they say or do, as conceptualized by psychologist Carl Rogers.

Client-Centered

A therapeutic approach developed by Carl Rogers emphasizing an individual's capacity for self-direction and understanding of their own development.