The higher coupon payment will cushion the impact of rising rates, which means the investor takes less of a hit on price.The 4 percent coupon bond might lose 15 percent in value if rates go up 1 percent, whereas the 6 percent coupon bond might only lose 10 percent in value, Cummings says.
The first tax band covers annual TAXABLE income (i.e., after deductions) from $0 to $9,225. On this band, you will pay 10% income tax. From $9,225 to $37,450 the tax rate is 15%. From $37,450 to $90,750 the tax rate is 25%.
The Deduction is the amount that is allowable to be deducted from the income for tax purposes. It is important for a taxpayer to know that there are two different types of tax deduction, an itemized deduction and a standard deduction. The amount of itemized and the standard deduction is not always the same.