Multiple Choice
If your after-tax realized real interest rate was 1 percent over the past year and you owned a one-year bond that paid 6 percent interest, what was the inflation rate if your tax rate was 15 percent?
A) 3.95 percent
B) 4.1 percent
C) 4.25 percent
D) 5.0 percent
Correct Answer:
Verified
Correct Answer:
Verified
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