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Assuming you belong to a marginal tax bracket equal to 15%, and you bought a corporate bond that produced a nominal interest (i) of 10% while inflation (π) was running at 7%.

Calculate the after tax real interest (r).

What should you after tax real interest (r) be assuming you were taxed on the real interest rate rather than the nominal?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92757315

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