Leonardo, who is married but files separately, earns $81,000 of taxable income. He also has $16,000 in city of Tulsa bonds. His wife, Theresa, earns $51,000 of taxable income.

If Leonardo earned an additional $31,000 of taxable income this year, what would be the marginal tax rate on the extra income for 2020? (Use tax rate schedule.) (Round your final answer to two decimal places.)

Curtis invests $425,000 in a city of Athens bond that pays 6.25 percent interest. Alternatively, Curtis could have invested the $425,000 in a bond recently issued by Initech, Incorporated that pays 7.25 percent interest with similar risk as the city of Athens bond. Assume that Curtis's marginal tax rate is 24 percent.

What is Curtis's after-tax rate of return on the city of Athens bond?

Curtis invests $500,000 in a city of Athens bond that pays 7.25 percent interest. Alternatively, Curtis could have invested the $500,000 in a bond recently issued by Initech, Incorporated that pays 7.75 percent interest with similar risk as the city of Athens bond. Assume that Curtis's marginal tax rate is 24 percent. How much explicit tax would Curtis incur on interest earned on the Initech, Incorporated bond?

Jackson has the choice to invest in city of Mitchell bonds or Sundial, Incorporated corporate bonds that pay 7 percent interest. Jackson is a single taxpayer who earns $55,500 annually. Assume that the city of Mitchell bonds and the Sundial, Incorporated bonds have similar risk. What interest rate would the city of Mitchell have to pay in order to make Jackson indifferent between investing in the city of Mitchell and the Sundial, Incorporated bonds for 2020? (Use tax rate schedule.)