Ted Earned $150,000 During the Current Year

question 14

True/False

Ted earned $150,000 during the current year. He paid Alice, his former wife, $75,000 in alimony. Under these facts, the tax is paid by the person who benefits from the income rather than the person who earned the income.

---

Definitions:

Yield To Maturity

The expected overall yield on a bond when it is kept until it matures.

Market Price

The actual selling price of a good or service in the marketplace at any given time.

Face Value

The nominal or original value printed on a security or financial instrument, such as a bond or stock certificate, indicating its worth at issuance.

Coupon Rate

The yearly interest yield on a bond, shown as a percentage of its nominal value, disbursed from the date of issuance to the date it matures.