Consider the following top federal tax rates in the United States: Personal Tax Rates Year Corporate Tax Rate Interest Income Dividends Capital Gains 2000 35% 40% 40% 20% 2005 35% 35% 15% 15% In 2000, the effective tax rate for debt holders was closest to: 61% 52% 64% 40%

QUESTION 18 Consider the following top federal tax rates in the United States: Personal Tax Rates Corporate Interest Capital Year Tax Rate Income Dividends Gains 2000 35% 40% 40% 20% 2005 35% 35% 15% 15% In 2000, the effective tax rate for debt holders was closest to: 61% 0 52% O 64% O 40%