Jeff Owns a Taxable Bond Portfolio Which Is Yielding 8

question 41

Multiple Choice

Jeff owns a taxable bond portfolio which is yielding 8.76 percent.His after-tax yield is 6.57 percent.What is his marginal tax rate?

• A) 25 percent
• B) 28 percent
• C) 31 percent
• D) 32 percent
• E) 34 percent

---

Definitions:

Mental Illness

A broad range of medical conditions that affect a person's thinking, feeling, mood, ability to relate to others, and daily functioning.

Mailbox Rule

The principle that holds that an acceptance is valid when it is placed in the mailbox, whereas a revocation is effective only when received by the offeree. In some jurisdictions, the mailbox rule has been expanded to faxes.

Binding Contract

An agreement between two or more parties that is enforceable by law, where all parties have agreed to the terms through offer and acceptance.

Contractual Capacity

The legal ability of a person to enter into a binding contract.