Tamra and Jacob Are Married and They File a Joint

question 1

Multiple Choice

Tamra and Jacob are married and they file a joint tax return. Tamra received nearly five times the salary that Jacob received. Which of the following statements is true?

• A)Tamra and Jacob likely pay no tax marriage penalty nor receive a tax marriage benefit.
• B)Tamra and Jacob likely pay a tax marriage penalty.
• C)Tamra and Jacob likely receive a tax marriage benefit.
• D)Tamra and Jacob likely will pay a tax marriage penalty and receive a tax marriage benefit.

---

Definitions:

Interest-Rate Risk

Interest-rate risk is the risk that changes in interest rates will negatively affect the value of an investment, particularly relevant for fixed-income securities.

Bond Duration

A measure of the sensitivity of a bond's price to changes in interest rates, representing the weighted average time until a bond's cash flows are received.

Coupon Rate

The annual interest rate paid on a bond, expressed as a percentage of the face value.

Yield To Maturity

The total return anticipated on a bond if it is held until the maturity date, taking into account both the interest payments and capital gains or losses.