You Are Considering the Purchase of a Tax-Exempt Security That

question 53

Multiple Choice

You are considering the purchase of a tax-exempt security that is paying a yield of 10.08 percent. You are in the 28 percent tax bracket. To match this after-tax yield, you would consider taxable securities that pay

• A)31.1 percent.
• B)19 percent.
• C)12.5 percent.
• D)14 percent.

Recognize the impact of incentives on individual and group behavior.

Acknowledge the role of marginal analysis in economic decision-making.

Identify the factors that influence economic choices and behaviors.

Grasp the basic postulate of economics that incentives matter.

---

Definitions:

Ethnicity

A social group that shares common cultural traits, such as language, religion, or ancestral origins.

Exclusive Jurisdiction

The sole authority of a particular court to adjudicate a case, with no other court having the same power.

Divorce

A legal process that terminates a marriage and resolves issues related to assets, debts, and child custody.

Adoptions

The legal process through which a person takes on the parenting responsibility for a child from that child's biological or legal parent(s), and permanently transfers all rights and obligations.