If your after-tax expected real interest rate is 3 percent and your expected inflation rate is 2

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Question:

If your after-tax expected real interest rate is 3 percent and your expected inflation rate is 2 percent, what

was

the nominal interest rate on your one-year bond if you faced a tax rate of 20

percent?

a. 5.0

percent

b. 5.75

percent

c. 6.0

percent

d. 6.25

percent

Posted Date: May 19, 2024 07:01 PM

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If your after-tax expected real interest rate is 3 percent and your expected inflation rate is 2

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