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Mary Bought a Bond ​A Debt Security for $2,500 with a Nominal

Question 23

Multiple Choice

Mary bought a bond ​a debt security for $2,500 with a nominal interest rate of 5 percent.If the inflation rate is 4 percent and Mary must pay 30 percent of her income in taxes, her after-tax nominal interest income is .


A) ​$87.50
B) ​$22.50
C) ​$37.50
D) ​$48.50

Correct Answer:

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