Question

Select all the correct answers.
Which two factors must Roger consider when calculating the taxable equivalent yield for a municipal bond?

~The bond has a tax-free yield of 5%.
~Roger’s investment income increases an average of 7% each year.
~Roger has realized long-term capital gains that qualify for a tax rate of 0%.
~Roger owns stock that pays a 4% dividend.
~Roger is in the 24% tax bracket.
~Roger was in the 22% tax bracket last year.

Answer 1

Answer:

The following are what Roger must calculate and put into consideration when calculating the taxable equivalent yield for a municipal bond:

~The bond has a tax-free yield of 5%.

~Roger’s investment income increases an average of 7% each year.  

~Roger owns stock that pays a 4% dividend.

~Roger is in the 24% tax bracket.

Step-by-step explanation: