Bonnie and Ernie File a Joint Return

question 52

True/False

Bonnie and Ernie file a joint return. Bonnie works and receives income during the year but Ernie does not. If the couple files a joint tax return, Ernie is responsible for paying any taxes due if Bonnie is unable to pay the taxes.

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Definitions:

Future Interest Rates

An indication of what the cost of borrowing money or the rate of return on investments will be at a future date.

Callable Bonds

Bonds that give the issuer the right to redeem them before their maturity date at a pre-specified price.

Bond Indenture

The underlying contract between the company issuing bonds and the bondholders.

Bond Premium

The additional amount over the face value for which a bond is sold, representing the difference between the bond's issue price and its nominal value.