Which of the Following Types of Interest Income Is Not

question 58

Multiple Choice

Which of the following types of interest income is not taxed as it is earned?

• A)Interest from savings accounts.
• B)Original issue discounts on corporate bonds.
• C)Accrued market discount on bonds.
• D)Interest from money market accounts.
• E)All of the choices are correct.

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Definitions:

Required Return

The return a investor needs on an investment to compensate for the risk of the investment.

Dividend

A portion of a company's earnings distributed to shareholders, typically in the form of cash or additional stock.

Expected Decline Rate

The anticipated rate at which a value, such as stock price or economic indicator, is projected to decrease over a specified period.

P/E Ratio

The price-to-earnings ratio, a valuation metric that compares the current share price of a company to its per-share earnings, used to evaluate if a stock is over or undervalued.