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Fixed Income Mathematics
book

Fixed Income Mathematics

by Robert Zipf
June 2003
Beginner content levelBeginner
366 pages
9h 16m
English
Academic Press
Content preview from Fixed Income Mathematics
in service charges less $150 in foregone income) in value each year and avoid-
ing the bother of service charges.
You can improve this analysis by including the effects of federal income tax.
Suppose Susan is in the 28% income tax bracket, a common bracket for tax-
payers. She would pay $42 in federal income tax on the interest income,
leaving $108 available as income. (U.S. Treasury interest is exempt from state
income taxes.) This is even more advantageous to Susan, in addition to avoid-
ing the bother of the bank service charges.
If Susan could earn 5% on the $6,000, she would earn $300 annually. After
the 28% income tax, she would have $216 left ...
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Publisher Resources

ISBN: 9780127817217