QUESTION 1 Chuck, a single taxpayer, earns $65,000 in taxable income and $10,000 in interest from an investment in City of Heflin bonds. Using the U.S. tax rate schedule, how much federal tax will he owe? QUESTION 2 Chuck, a single taxpayer, carns $65,000 in taxable income and $10,000 in interest from an investment in City of Heflin bonds. What is his average tax rate? (Carry your answer two decimals, i.e., 20.05) QUESTION 3 Chuck, a single taxpayer, earns $65,000 in taxable income and $10,000 in interest from an investment in City of Heflin bonds. What is his effective tax QUESTION 4 Chuck, a single taxpayer, carns $65,000 in taxable income and $10,000 in interest from an investment in City of Hellin bonds. What is his current marginal tax rate? QUESTIONS Chuck, a single taxpayer, earns 565,000 in taxable income and $10,000 in interest from an investment in City of Hellin bonds. If Chuck eams an additional $40,000 of taxable income, what is his marginal tax rate on this income? QUESTION 6 Chuck, a single taxpayer, carns $65,000 in taxable income and $10,000 in interest from an investment in City of Heflin bonds. If Chuck claims an additional S40,000 of deductions, what is his marginal tax rate on this income? QUESTION 7 Jorge and Anita, married taxpayers, cam $140,000 in taxable income and $40,000 in interest from an investment in City of Heflin bonds. Using the U.S. tax rate schedule for married filing jointly, how much federal tax will they owe? QUESTIONS Melinda invests $100,000 in a City of Heftin bond that pays 6.4 percent interest. Alternatively, Melinda could have invested the $100,000 in a bond recently issued by Surething, Inc. that pays 8 percent interest with similar risk and other nontax characteristics to the City of Helin bond. Assume Melinda's marginal tax rate is 20 percent. What is her after-tax rate of return for the City of Hellin bond? QUESTION 9 Melinda invests $100,000 in a City of Hellin bond that pays 6.4 percent interest. Alternatively, Melinda could have invested the $100.000 in a bond recently issued by Surething, Inc. that pays 8 percent interest with similar risk and other nontax characteristics to the City of Heflin bond. Assume Melinda's marginal tax rate is 20 percent. How much implicit tax does she pay on the City of Herlin bond? QUESTION 10 Melinda invests $100,000 in a City of Hellin bond that pays 6.4 percent interest. Alternatively, Melinda could have invested the $100,000 in a bond recently issued by Surething, Inc. that pays 8 percent interest with similar risk and other nontax characteristics to the City of Heflin bond. Assume Melinda's marginal tax rate is 20 percent. How much explicit tax would she have paid on the Surething, Inc. bond? QUESTION 11 Melinda invests $100,000 in a City of Heflin bond that pays 6.4 percent interest. Alternatively, Melinda could have invested the $100,000 in a bond recently issued by Surething, Inc. that pays 8 percent interest with similar risk and other nontax characteristics to the City of Heflin bond. Assume Melinda's marginal tax rate is 20 percent. What is her after-tax rate of return on the Surething, Inc. bond? QUESTION 12 Hugh has the choice between investing in a City of Heflin bond at 6 percent or a Surething bond. Assuming that both bonds have the same nontax characteristics and that Hugh has a 35 percent marginal tax rate. What interest rate does Surething, Inc. need to offer to make Hugh indifferent between investing in the two bonds