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Sagot :
Answer:
tax bracket: 18%
tax-free yield: 3%
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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
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