For Each of the Following,determine If Each Is a Tax

question 6

Essay

For each of the following,determine if each is a tax and why or why not.
a.$2.50 toll paid on the Florida Turnpike
b.$300 ticket for reckless driving
c.1% local surcharge on hotel rooms to fund public roadways
d.2% city surcharge on wages earned in the city of Philadelphia

---

Definitions:

Par

The face value of a bond or other security, at which it can be redeemed at maturity or the amount of money equal in value to a particular share or bond.

Coupon

The yearly payment of interest to those holding bonds, represented as a percentage of the bond's nominal value.

Semi-Annual Coupon

A bond payment made to bondholders twice a year, representing interest on the bond's face value.

Effective Annual Yield

The actual interest rate an investment earns in a year, taking into account the effects of compounding.