Which of the following statements is true?
A. Municipal bonds typically pay a higher interest rate than corporate bonds with similar risk.
B. Municipal bond interest is subject to implicit tax.
C. Municipal bond interest is subject to explicit federal tax.
D. All of these statements are true.
E. None of these statements are true.
Answer: B
You might also like to view...
Monetary incentives include job satisfaction, increased responsibility, and firm recognition of a job well done
Indicate whether the statement is true or false
The greater the emphasis on intangible activities, the more management's attention will be directed to:
A) buildings and property. B) training employees. C) truck fleets. D) material costs.
Sachi is single and has taxable income of $33,000 without considering the sale of a capital asset in November of 2018 for $20,000. That asset was purchased six years earlier and has a tax basis of $5,000. The tax liability applicable to only the capital gain is
A. $2,250. B. $3,000. C. $1,410. D. $0.
A mutual fund had NAV per share of $23.00 on January 1, 2016. On December 31 of the same year, the fund's NAV was $23.15. Income distributions were $0.63, and the fund had capital gain distributions of $1.26. Without considering taxes and transactions costs, what rate of return did an investor receive on the fund last year?
A. 11.26% B. 10.54% C. 8.87% D. 8.26% E. 9.63%