The University of Kentucky Builds with Bonds

Every year, hundreds of colleges around the country build new buildings. Where do most schools get the money for these expensive projects? From long-term bonds.   

The University of Kentucky (UK) has issued “revenue” bonds to build buildings on the 23,000 student Lexington campus, and on 14 community colleges throughout the state. These bonds pledge the school’s revenues as collateral to guarantee payment of the bonds. At one time the outstanding debt on the Lexington campus buildings was $137 million. The total debt on the community college buildings equaled $121 million. The bonds generally have maturities ranging from 10 to 20 years.

Additional “guarantees” for bond purchasers are the ratings given the bonds by professional rating agencies.   Their bonds are rated “AA-“ by Standard & Poor’s Corporation, which is well above investment grade. Thee is always a very good market for the bonds.

People in Kentucky identify very closely with the university. Even though the bonds are rated “AA-” they trade at AAA (the top bond rating) because they are so easy to sell.  

One advantage for investors: the bonds’ interest revenue id exempt from federal income tax and from state tax for in-state investors. So, an issue offering 6% is the equivalent of 10% to those individuals in the top tax bracket. Many investors feel very confident in buying the bonds, because it is inconceivable to them that there would ever e a default.  

1) The University of Kentucky’s bonds are rated “AA-“ by Standard & Poor’s and A1 by Moody’s Investor Service. Why is it important to the University of Kentucky that its bonds have a high bond rating?

2) Why does the state use bonds to finance the buildings rather than taking the funds out of general revenues?

3) Explain the meaning to the tax-exempt status of the University of Kentucky bonds. What does it mean to say that “a recent issue offering 6% is the equivalent of 10% to those individuals in the top tax bracket?”

These are stressful days in general. Final exams coming up, a lot of studying to do, all the news around us, …….. A large university conducted a study of their undergraduate students to find out how stressful they feel and recorded their gender as well below is the table that shows how each of the gender felt when asked about if they felt stressed (5 points) Felt Stressed Gender YES NO Male 244 495 Female 282 480 a. Find out if there is a difference between males and females with regards to feeling stressed out. Use the 0.05 significance level for testing b. what is the p value and interpret its meaning in the context of the problem above

Alfred and Lynne Lunt are married and have twin two-year-old daughters. In addition, the couple Alfred and Lynne provide more than half the support of Alfred father, Ivor, who has no income and who lives in a home that the couple maintain in Florida. In addition, Alfred's brother, Bruce, lives with the couple for nine months of the year after moving to the area for a new job, at which he earned $45,000 during 2017.

A. Two B. Three C. Four D. Five E. Six

Earned Income Credit:

For each of the following situations, compute the taxpayers’ 2019 earned income credit. A. Patty and Ron Barnett file a joint return, claiming their two sons, ages 3 and 5, as dependents. The Barnett’s AGI is $14,400, which consists entirely of Ron’s wages. B. Joseph is a 25-year-old graduate student. His gross income consists of $5,000 of wages and $80 in interest from a savings account. Joseph files as single and claims no dependents. C. Suzanne and Vernon Zimmerman file a joint return, claiming their 6-year-old daughter as a dependent. The Zimmermans’ AGI consists of Vernon’s $26,375 in wages, and $400 in dividend income. D. Sarah files as head of household, claiming her 2-year-old son as a dependent. Sarah’s AGI consists of $18,000 in wages and $3,620 in interest income.

workplace trust is something that should be earned or given (without being earned)?   please do develop thoughts and ideas as to the rationale behind your stance.

Students have shown that children in the US who have been spanked have a significantly lower IQ score on average than children who have not been spanked.

A) What is the explanatory variable in these studies? What type of variable is it?

B) What is the response variable in these studies? What type of variable is it?

C) Do you think these studies were observational studies or experiments? Explain.

Question: 3
There are four witnesses to a theft crime and investigator found out that if the witness 1 is telling
truth so is the witness 2, the witness 2 and the witness 3 can’t both be telling the truth, the
witness 3 and witness 4 are not both lying. And lastly if witness 4 is speaking truth then witness 2 is not
speaking truth. Tell us who are telling truth and who lies.

1. Taxes drive a wedge between the:

• quantity bought and the price received by sellers.

• price paid by buyers and the quantity received by sellers.

• income of the buyers and the incomes received by sellers.

• price paid by buyers and the price received by sellers.

2. Which of the following explains why most people’s marginal tax rate is higher than their average tax rate?

• The average tax rate is the tax you pay on your last dollar earned, while the marginal rate is the overall proportion of income paid in taxes.

• The marginal tax rate is the tax you paid on economic activities such as stock and bond trading, while the average rate is the overall proportion of income paid in taxes.

• Marginal tax is only paid by high-income households who earn more than the national average income. Households earning less than the average pay the average tax rate.

• The marginal tax rate is the tax you pay on your last dollar earned, while the average rate is the overall proportion of income paid in taxes.

A system in which average tax rates are higher than marginal tax rates is called:

• regressive.

• progressive.

• proportional.

3. The concept of incidence is used to describe:

• the geographic area where the tax applies.

• who bears the burden of any sort of tax.

• who receives the revenue of any sort of tax.

• who administers any tax.

1. During the class lectures, it was noted that fallacies, in almost all cases, usually can be reflected as emotionally believable while in reality they are:

Select one:

a. Deductive

b. Deductively incoherent

c. Sufficiently critical

d. Rationally imperfect

.

2. While reviewing fallacies, the fallacy of appeal to an individual is usually thought of as discarding a claim by which of the following:

Select one:

a. Disapproving the individual who creates it

b. Creating made-up announcements

c. Exercising speechmaking

d. Disregarding the individual

.

3. During in our class discussions, whether someone is insincere in stating his other claims is considered:

Select one:

a. Related only in law court

b. Unrelated to the person’s character

c. Unrelated to the accuracy of the statements

d. Confirmation that the statements are wrong

describing how a family assessment is different from an individual patient assessment.