?Which of the following statements is true about a zero coupon bond?
A. A zero coupon bond is taxed as a capital gain at the time the bond matures.?
B. ?A zero coupon bond is issued at a substantial discount below its par value.
C. ?A zero coupon bond is issued at a coupon rate that adjusts for inflation.
D. ?The interest received every year on a zero coupon bond is taxed as interest income.
E. ?The discount on the issue of a zero coupon bond is written off over its life in the investor's financial statement.
Answer: B
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Natalie transferred $500,000 of bonds to a revocable trust with directions to the trustee to pay income to her aunt for five years, after which the corpus is to be distributed to Natalie's niece. At year-end, the trustee paid $16,000 of income to the aunt. Which of the following is a true statement?
A. Natalie has not made a complete gift because the trust is revocable. B. Natalie has made a taxable gift of $16,000. C. Natalie has made a complete gift of $500,000. D. Natalie has made a taxable gift of $1,000. E. None of the choices are correct.
Answer the following statements true (T) or false (F)
1.Although an import tariff provides the domestic government additional tax revenue, it benefits domestic consumers at the expense of domestic producers. 2.An import tariff reduces the welfare of a "small" country by an amount equal to the redistribution effect plus the revenue effect. 3.The deadweight losses of an import tariff consist of the protection effect plus the consumption effect. 4.The redistribution effect is the transfer of producer surplus to domestic consumers of the import-competing product. 5.If a country accounts for a negligible portion of international trade in a particular product, its levying an import tariff on that product necessarily increases its overall welfare.
To determine the best approach to organizing your message, which of the following is least likely to affect the choice?
A) Audience's likely reaction B) Unique circumstances of the message C) The type of message D) The amount of time available to develop the message E) Unique circumstances of the audience
Through his observation of human behavior, psychologist Lawrence Kohlberg developed a model of moral development. Describe the stages of moral development that were studied and developed by Kohlberg and the relevance of this model for ethical business behavior