1. Caroline, who files as head of household, received $9,000 of social security benefits. Her AGI before the social security benefits was $27,000. She also received $200 of tax- exempt interest. What is the amount of taxable social security benefits?
A) $9,000.
B) $7,650.
C) $3,350.
D) $4,500.
2. An 8% 20-year $1,000 par bond pays its coupon annually. The market rate has risen to 10% and the bond has 10 years left to maturity. What should the price of this bond be? PLEASE SHOW WORK
a. 900.05
b. 603.47
c. 877.11
d. 1023.05
3. An 8% 20-year $1,000 par bond pays its coupon annually. The market rate has risen to 10% and the bond has 10 years left to maturity. What should the price of this bond be? PLEASE SHOW WORK.