1 FSMA 300 Quiz 1-Final- 3ed- Protected View - Saved to this PC Layout References Mailings 42. Revenue bonds are A: ABCDE B: C: D: E: A: B: C: D: E: Review ABCDE View 43. Jason is in the 28% Federal income tax bracket and 7% New York state income tax. He has invested in New York State bonds that yields a 6% return. The taxable equivalent yield on this bond is Help 6.45% 7.32% 8.54% 9.23% 10.61% 44. Stripped bonds are discounted bonds. 45. Tax-exempt stripped bonds are excellent for children under age 19 and some students up to age 23 who are subject to their parents' tax rate on unearned income. 46. Users of strips as an investment alternative include all of the following EXCEPT C: Search backed by the full faith and credit of the issuer's taxing authority. less risky than general obligation bonds. backed by user fees from a specified project. usually used to finance the general operations of the issuing authority. rarely exempted from Federal income taxes. A: investors who need a specified accumulation at the maturity date. conservative investors. B: C. D: E: children under the age of 14. D: investors desiring steady cash inflows. E: all of the above are potential strip investor 47. "Manufactured" stripped bonds include A: DOGS. B: BRDs. TIGRs. ELKS. all of the above are "manufactured" stripped bonds