Question
Regarding the tax treatment of payments to securities holders, it is true that _______________, while ____________________. 1. interest and preferred stock dividends are tax-deductible; while
Regarding the tax treatment of payments to securities holders, it is true that _______________, while ____________________.
1. | interest and preferred stock dividends are tax-deductible; while common stock dividends are not tax-deductible | |||||||||||||||||||||||||
2. | common stock dividends and preferred stock dividends are tax-deductible; while interest is not tax-deductible | |||||||||||||||||||||||||
3. | interest and preferred stock dividends are not tax-deductible; while common stock dividends are tax-deductible | |||||||||||||||||||||||||
4. | common stock dividends and preferred stock dividends are not tax-deductible; while interest is tax-deductible A $1,000 par value 10-year bond with a 10 percent coupon rate recently sold for $900. The yield to maturity is:
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