Multiple Choice
If the nominal rate of interest on a bond was 5 percent,the inflation rate was 3 percent and an individual was in a 25-percent tax bracket,the after-tax real return on the bond would be equal to
A) 2 percent.
B) 2.5 percent
C) .5 percent..
D) -.5 percent.
E) none of the above.
Correct Answer:
Verified
Correct Answer:
Verified
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