how canni know which one tax exempt from a question 43 44 ? where is the key words to hint ?

39. Using the facts in problem 38, if Jorge and Anita earn an additional $100,000 of taxable income, what is their marginal tax rate on this income? What is their marginal rate if, instead, they report an additional $100,000 in deductions? 40. Scot and Vidia, married taxpayers, earn $240,000 in taxable income and $5,000 in interest from an investment in City of Tampa bonds. Using the U.S. tax rate sched- ule for married filing jointly (see Example 1-3), how much federal tax will they owe? What is their average tax rate? What is their effective tax rate? What is their current marginal tax rate? 41. Using the facts in problem 40, if Scot and Vidia earn an additional $80,000 of taxable income, what is their marginal tax rate on this income? How would your answer differ if they, instead, had $80,000 of additional deductions? 42. Melinda invests $200,000 in a City of Heflin bond that pays 6 percent interest Alternatively, Melinda could have invested the $200.000'in a bond recently issued by Surething Inc that pays 8 percent interest and has risk and other nontax characteristics similar to the City of Heflin bond, Assume Melinda's marginal tax rate is 25 percent a) What is her after-tax rate of return for the City of Heflin bond? b) How much explicit tax does Melinda pay on the City of Heflin bond? c) How much implicit tax does she pay on the City of Heflin bond? d) How much explicit tax would she have paid on the Surething Inc. bond? e) What is her after-tax rate of return on the Surething Inc. bond? 43. Hugh has the choice between investing in a City of Heflin bond af 6 percent or in- in a Surething Inc. bond at 9 percent. Assuming that both bonds have the same nontax characteristics and that Hugh has a 40 percent marginal tax rate, in which bond should he invest? implicit 44. Using the facts in problem 43, what interest rate does Surething Inc. need to offer to make Hugh indifferent between investing in the two bonds? 45. Fergie has the choice between investing in a State of New York bond at 5 percent and a Surething Inc, bond at 8 percent. Assuming that both bonds have the same nontax characteristics and that Fergie has a 30 percent marginal tax rate, in which bond should she invest? 46. Using the facts in problem 45, what interest rate does the State of New York bond need to offer to make Fergie indifferent between investing in the two bonds? P1-boxesting