IDNLearn.com is the place where your questions are met with thoughtful and precise answers. Our experts provide prompt and accurate answers to help you make informed decisions on any topic.


Each tile provides an investor’s tax bracket along with the tax-free yield of a bond the investor purchased. Use the formula to determine the taxable equivalent yields of the investments, and then order the investments from least to greatest return.

taxable equivalent yield = 

tax bracket: 18%
tax-free yield: 3%

tax bracket: 24%
tax-free yield: 6%

tax bracket: 32%
tax-free yield: 3%

tax bracket: 22%
tax-free yield: 5%

tax bracket: 32%
tax-free yield: 4%




Sagot :

Answer:

tax bracket: 18%

tax-free yield: 3%

<

tax bracket: 32%

tax-free yield: 3%

<

tax bracket: 32%

tax-free yield: 4%

<

tax bracket: 22%

tax-free yield: 5%

<

tax bracket: 24%

tax-free yield: 6%

Explanation:

correct on plato/edmentum

Tax bracket And tax-free yield (18%, 3%) < (32%, 3%) < (32% , 4%) < (22% , 5%) < (24% , 6%) .

Taxable equivalent yield based problem:

Taxable equivalent yield = Tax-free yield / (100 - Tax bracket)

Taxable equivalent yield =  3 / (100 - 18) = 0.03659

Taxable equivalent yield = 6 / (100 - 24) = 0.07895

Taxable equivalent yield = 3 / (100 - 32) = 0.04412

Taxable equivalent yield = 5 / (100 - 22) = 0.06410

Taxable equivalent yield = 4 / (100 - 32) = 0.05882

Find out more information about 'Tax bracket'.

https://brainly.com/question/22852392?referrer=searchResults