The tax bracket and holdings of your client are as follows: Federal tax bracket = 33% Investment Annual Income June 30, Last Year's Purchase Price June 30, This Year's Market Price Money fund $6,500 $100,000 $100,000 11% T bonds $11,000 $100,000 $140,000 S&P 500 Index Fund $6,000 $100,000 $160,000 Computer stock fund $3,000 $100,000 $85,000*There have been no capital gain distributions. During the 12 months from June 30 last year, through June 30 this year, the portfolio earned in annual yield and before-tax appreciation, respectively: 5.5% yield and 17.5% appreciation 5.5% yield and 21.3% appreciation 6.6% yield and 17.5% appreciation 6.6% yield and 21.3% appreciation
The tax bracket and holdings of your client are as follows: Federal tax bracket = 33% Investment Annual Income June 30, Last Year's Purchase Price June 30, This Year's Market Price Money fund $6,500 $100,000 $100,000 11% T bonds $11,000 $100,000 $140,000 S&P 500 Index Fund $6,000 $100,000 $160,000 Computer stock fund $3,000 $100,000 $85,000*There have been no capital gain distributions. During the 12 months from June 30 last year, through June 30 this year, the portfolio earned in annual yield and before-tax appreciation, respectively: 5.5% yield and 17.5% appreciation 5.5% yield and 21.3% appreciation 6.6% yield and 17.5% appreciation 6.6% yield and 21.3% appreciation
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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The tax bracket and holdings of your client are as follows:
Federal tax bracket = 33%
| Investment | Annual Income | June 30, Last Year's Purchase Price | June 30, This Year's Market Price |
|---|---|---|---|
| Money fund | $6,500 | $100,000 | $100,000 |
| 11% T bonds | $11,000 | $100,000 | $140,000 |
| S&P 500 Index Fund | $6,000 | $100,000 | $160,000 |
| Computer stock fund | $3,000 | $100,000 | $85,000 |
During the 12 months from June 30 last year, through June 30 this year, the portfolio earned in annual yield and before-tax appreciation, respectively:
5.5% yield and 17.5% appreciation
5.5% yield and 21.3% appreciation
6.6% yield and 17.5% appreciation
6.6% yield and 21.3% appreciation
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